1. Suppose Paycheck, Inc., has a beta of 1.16. If the market return is expected to be 13.90 percent and the risk-free rate is 6.50 percent, what is Paycheck’s risk premium? (Round your answer to 2 decimal places.)
2. The stakeholders of every business want information about the firm's financial health. Accordingly, companies maintain three basic financial statements reflecting that firm's activity and financial condition. What are those three statements and what information do they contain?