1. Which of the following current asset investment policies emphasizes holding minimal current assets.

A Relaxed current asset investment policy

B Restriced current asset investment policy

C Moderate current asset investment policy

D Fat cat current asset investment policy

E Precautionary current asset investment policy

2. The Jackson Company has just paid a dividend of $3.00 per share on its common stock, and it expects this dividend to grow by 10 percent per year, indefinitely. The firm has a beta of 1.50; the risk-free rate is 10 percent; and the expected return on the market is 14 percent. Which of the following is the required rate of return as per the capital asset pricing model (CAPM) approach?

A 9 percent

B 12 percent

C 7 percent

D 16 percent

E 18 percent