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QUESTION 4 If you were the CEO of a compary and was promised a $10M...

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QUESTION 4 If you were the CEO of a compary and was promised a $10M bonus If net income were to increase by 10% this year. You might A. Increase profits by eliminating much of the advertising, reducing expenses, a good long run result for the company and the stockholders O B. Increase profits by eliminating much of the research and development expenses, a good long run result for the company and stockholders. OC Increase profits by eliminating employee training programs, reducing expenses, a good long run result for the company and stockholders OD. You might do a, b, and o, because profits will go up and you will be happy to receive a the bonus OE Hold everything, this reward system is misguided because it encourages reducing expenses now in ways that makes you better off (richer) but have negative impact on the future performance of the company QUESTIONS You are looking at an annuity that promises to pay $10,000 per year to you and your heirs forever. Suppose the first payment will be in one year and the going rate on these annuities is 5 percent. A fair price for this annuity would be O A $10,000 O B. $100,000 C. $ 200,000 O D. An infinite amount O E None of the above

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