CASE STUDY 27.9 SO YOU THOUGHT SPINACH WAS GOOD FOR YOU

question 10

Essay

CASE STUDY 27.9
SO YOU THOUGHT SPINACH WAS GOOD FOR YOU?
For Questions , use the following narrative
Narrative: Case study 27.9 summary
A study published in the New England Journal of Medicine shows that the antioxidant beta-carotene markedly increased the incidence of lung cancer among heavy smokers in Finland.Incidence of lung cancer was 18% higher among the 14,500 smokers who took beta-carotene than among the 14,500 who didn't.The probability that the observed increase was due to chance is less than one in one hundred.(A difference in such studies is taken seriously when the probability that it happened by chance is less than one in twenty.)This result was particularly worrying to researchers and the media, because it comes from a large, randomized clinical trial, yet it goes against all the previously available evidence.Over a hundred epidemiologic studies indicate that people who have high levels of beta-carotene in their diet and in their blood have lower risks of cancer, particularly lung cancer.

-{Case study 27.9 narrative} Explain why we should perhaps not be surprised by the results of this study, in light of all the studies that had been done before.(Assume that the quality of the studies is not an issue.)

Grasp the concept of liquidity and its relevance to a company's financial health.

Understand the procedures and significance of controlling cash receipts and payments.

Recognize the use and purpose of a voucher system in internal controls.

Understand basic bank services and their roles in controlling cash.

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Definitions:

Borrow

The act of receiving money, goods, or services from a lender or institution under an agreement to return or repay it in the future.

Stock Price

The cost of purchasing a single share of a particular stock on the stock market.

Levered Firm

A company that utilizes debt financing as a significant portion of its capital structure.