The owner of a private language school has a profit of $50,000 for the year. She has the option of saving the $50,000 for future opportunities or investing all of this amount in a new classroom facility. The investment has a 50% probability of gaining $20,000 and a 50% probability of losing $35,000. ($15,000 left) If she has a square root utility function, what should the school do
Answers: 2
Business, 21.06.2019 18:20
Which of the following housing decisions provides a person with both housing and an investment? a. selling a share in a cooperative. b. buying a single-family home. c. renting an apartment. d. subletting a condominium. 2b2t
Answers: 2
Business, 21.06.2019 20:30
What is the most important type of decision that the financial manager makes?
Answers: 2
Business, 22.06.2019 06:10
Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) wacc %
Answers: 2
Business, 22.06.2019 07:20
Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.
Answers: 1
The owner of a private language school has a profit of $50,000 for the year. She has the option of s...
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