Hudson furniture specializes in office furniture for self-employed individuals who work at home. hudson’s furniture emphasizes style rather than utility and has been quite successful. the firm is now considering entering the more competitive industrial furniture market where volumes are higher but pricing is more competitive. a $10 million investment is required to enter the new market. management anticipates positive cash f lows of $1.7 million annually for eight years if hudson enters the field. an average stock currently earns 8%, and the return on treasury bills is 4%. hudson’s beta is .5, while that of an important competitor who operates solely in the industrial market is 1.5. should hudson consider entering the industrial furniture market?

An attorney came to work on a saturday. when he signed in, he was advised by the morning security guard employed by the building management that he must be out of the building by 5 p.m., when it closes. however, he stayed past 5 p.m. to complete a brief that had to be filed on monday morning. at 5: 15 p.m., the afternoon security guard set the locks on all the doors of the building and left. because she was in a hurry, she did not check the sign-in sheet to make sure that everyone had signed out, contrary to mandatory procedures. when the attorney tried to exit 15 minutes later, he discovered that the doors were all locked and could not be opened from the inside. he used his cell phone to call for , and a supervisor from the building arrived and let him out shortly thereafter. if the attorney sues the building management for false imprisonment, is he likely to win?