Risk that applies to most securities

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Reference no: EM131354304

1. Which one of the following is a risk that applies to most securities?

A. unsystematic

B. systematic

C. total

D. diversifiable

2. Jessica is examining data for Gamma, Inc. She sees that Gamma has EBIT (operating profit) of $2,000,000. She knows that Gamma paid $400,000 in interest. If Gamma has a corporate tax rate of 34% and if Gamma has 100,000 common shares outstanding, Jessica will calculate Gamma’s net income as $_________.

a. 1,024,000

b. 1,040,000

c. 1,056,000

d. 1,072,000

e. 1,090,000

Reference no: EM131354304

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