TABLE 4-9 A Survey Conducted by the Segal Company of New York

question 116

Short Answer

TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their noncash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
-Referring to Table 4-9, if a company is selected at random, what is the probability that the company offers stock options to their board members?

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Definitions:

Loanable Funds

The loanable funds market is a conceptual framework for understanding the market where borrowers and lenders interact, determining the supply and demand for loans and consequently the interest rate.

National Saving

The total amount of savings in a country, calculated as the sum of private savings by households and businesses, plus public savings by the government, minus any foreign borrowing.

Open-Economy Macroeconomic

A branch of macroeconomics that studies economies in which international trade and financial transactions play a significant role.

Loanable Funds

The funds available for borrowing in the financial markets, involving the lending and borrowing between savers and borrowers, which determines the equilibrium interest rate.