Frank barlowe is retiring soon, so he is concerned about his investments providing him steady income every year. he is aware that if interest rates the potential earnings power of the cash flow from his investments will icrease. in particular, he is concerned that a decline in interest rates might lead to annual income from investments. what kind of risk is frank most concerned about protecting against? a. interest rate riskb. reinvestment rate risktrue or false: assuming all else is equal, short-term securities are exposed to higher reinvestment rate risk than long-term securities. a. trueb. falso

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: