Home Appliance Warehouse,Inc

question 22

Multiple Choice

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

• A) Cash balance plan
• B) 403(b)plan
• C) 457 plan
• D) 401(k)plan
• E) b,c,and d

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Definitions:

Market-To-Book Ratio

A ratio used to compare a company's market value to its book value, indicating investors' expectations of the company's future growth prospects.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability of a company on a per-share basis.

Times-Interest-Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on its current earnings.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.