Kaufman industries expects next year’s operating income (ebit) to equal $4 million with a standard deviation of $2 million. the coefficient of variation of operating income is equal to 0.50. interest expenses will be $1 million and preferred dividends will be $600,000. debt retirement will require principal payments of $1 million. kaufman’s marginal tax rate is 40%. if ebit is normally distributed, what is the probability that kaufman will have negative eps next year?

You own a nonunion company with 93 nonexempt employees. all of these employ- ees pack books into boxes for shipment to customers throughout the united states. because of wide differences in performance, you have decided to try performance appraisal, something never done before. until now, you have given every worker the same size increase. now you want to measure performance and reward the best performers with bigger increases. without any further information, which of the five types of appraisal formats do you think would be most appropriate? justify your answer. do you anticipate any complaints, or other comments, from employees after you implement your new system?