1. The Income Statement
Is a good representation of a breakeven chart because it differentiates between variable costs and fixed costs
Allows a manager to monitor deterioration in gross profit margins
Allows a manager to see how profitable the company is on a monthly and annual basis
All of the above
2. Determinants of Interest Rate for Individual Securities A 2-year Treasury security currently earns 5.25 percent. Over the next two years, the real interest rate is expected to be 3.04 percent per year and the inflation premium is expected to be 2.04 percent per year. What is the maturity risk premium on the 2-year Treasury security?
1.00%
.17%
1.05%
5.08%