Use the Table for the Question(s)below

question 89

Multiple Choice

Use the table for the question(s) below.
The quarterly working capital levels for Hasbeen Toys are presented in the following table (in $ millions) :

-The permanent working capital needs for Hasbeen Toys is closest to:

• A)$1,100 million
• B)$2,435 million
• C)$1,275 million
• D)$770 million
• E)$640 million

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Definitions:

Market Risk Premium

The market risk premium is the additional return an investor expects to receive from holding a risky market portfolio instead of risk-free assets.

Portfolio AB

A diversified collection of investments of varying types held by an individual or institution.

Market Risk Premium

The additional return expected by investors for accepting the higher risk associated with the equity market over a risk-free asset.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield of a short-term government bond.