Perez Electronics Corp. has reported that its net income for 2006 is $1,276,351. The firm has 420,000 shares outstanding and a P-E ratio of 11.2 times. What is the firm's share price?

When planning an audit, and auditor should

a. Consider whether the extent of substantive procedures may be reduced based on the results of tests of controls b. Determine overall materiality for audit purposes c. Conclude whether changes in compliance with prescribed internal controls justify reliance on them d. Evaluate detected misstatements

Define the terms systematic risk and unsystematic risk. Be sure to explain the difference between the two. Which type of risk can be diversified away? How do we measure the remaining type of risk?

Evaluate the statement: "If we could just make our investment portfolio large enough, we could completely eliminate risk and earn a market portfolio rate of return with the risk of a risk-free investment." What will be an ideal response?