Running Head: East Coast Yachts 1
Managerial Financing
May 22, 2020
East Coast Yachts 2
What advantages do the mutual funds offer compared to the company stock?
Investors have a great way to diversify the holdings that invested in Mutual funds
instantly. Investing in mutual funds also gives more flexibility to the investors along with better
project management. Asset diversification is given to the investor when invested in mutual funds
which is a key factor when an investor wants to limit their jeopardy. Limiting the risk also means
limiting the returns. A manager controls the buying and selling in Mutual funds.
Assume that you invest 5% of your salary and receive the full 5% match from East Coast
Yachts. What EAR do you earn from the match? What conclusions do you draw matching
plans?
EAR is nothing but the amount by which net income is anticipated to decline in the
