The First Issue in Setting Up a Benefits Package Is

question 33

Multiple Choice

The first issue in setting up a benefits package is:

• A) who should be protected or benefited.
• B) how much choice should employees have among benefits.
• C) how should benefits be financed.
• D) are benefits legally defensible.

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Definitions:

Cost of Debt

The effective rate that a company pays on its current debt, including interest payments and fees.

Capital-Asset-Pricing Model

A model used in finance to determine a theoretically appropriate required rate of return of an asset, considering its risk relative to the market.

Dividend Growth Approach

A method of valuing a company's stock based on the assumption that dividends will grow at a constant rate indefinitely.

Risk Premium Approach

A method of calculating the required rate of return for an investment by adding a premium for the investment's risk to the risk-free rate of return.