Business, 15.04.2021 22:40 destinywashere101

General Tin (GT) is worried that its mine in Peru will be expropriated during the next 12 months. The Peruvian government has promised, however, to pay compensation of $15 million at the year's end if it expropriates the mine. GT believes that this promise would be kept. If expropriation does not occur this year, it will not occur anytime in the foreseeable future. The mine is expected to be worth $50 million at the end of the year. A wealthy Peruvian has just offered GT $19 million for the mine today. If GT's risk-adjusted discount rate is 22%, what is the probability of expropriation at which GT is just indifferent between selling now or holding on to its mine

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 17:10

Which statement describes a monopoly? many firms produce identical products with no control over the market price. many firms produce differentiated products with control over market price. a single firm produces a product with no close substitutes and control over the market price. a single firm produces a product with many close substitutes and limited control over the market price.

Answers: 1

Answer

Business, 22.06.2019 10:10

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

Answers: 3

Answer

Business, 22.06.2019 14:30

Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

Answers: 1

Answer

Business, 22.06.2019 22:00

Acompany's sales in year 1 were $300,000, year 2 were $351,000, and year 3 were $400,000. using year 2 as a base year, the sales percent for year 3 is

Answers: 2

Answer

You know the right answer?

General Tin (GT) is worried that its mine in Peru will be expropriated during the next 12 months. Th...

Questions