Answer:
$40,000 per year; $37,500 per year; $40,000.
Explanation:
From the question above, we are given the following parameters; Alpha Firm offers a salary = $40,000 per year + no bonuses, "Beta Firm offers a base salary of $35,000 per year with a 25% chance that you will receive an annual bonus of $10,000".
So, to answer the question,the expected salary of working for Alpha Firm will surely be = $40,000 per year.
At Beta Firm the expected salary is = $35,000 + 0.25($10,000) = $37,500.
Therefore, if I was risk neutral, the expected value of the year bonus offered by Beta Firm would need to be at least $40,000 for me not to be indifferent to the choice between the two options.
By providing a means for reliable transportation, the railroads made the regular shipping of manufacturing supplies and manufactured goods in mass quantities possible.<span> As a result, the railroads laid the groundwork for the Industrial Revolution through providing a foundational need in the development of industry.</span>
Answer:
The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities.
Explanation:
Financial adversity refers to difficulty is obtaining fund to take opportunities and meet needs including debt settlement.
The statement of cash flows shows how much cash flows and out of an organisation and how regular and stable they are. It therefore allows user to evaluate financial flexibility of the organisation.
Answer:
$337.50
Explanation:
Total purchase price= 100 * $20= $2000
Total selling price= 100 x $32= $3,200
Dividend= $150
A capital gain is an increase in the value of an asset or investment resulting from the price appreciation of the asset or investment
Capital gain = Total selling price + dividend - Total purchase price
Capital gain = $3,200 + $150- $2,000
Capital gain= $1350
Tax is for 25%
25/100 x $1350
= $337.50