Answer:
In the product Lookup worksheet, cell F5 should contain the number generated by the Goal Seek analysis.
Answer:
$5.96 million
Explanation:
Expected Utility = √W
expected utility = (probability ship doesn't sink x √utility of the ship) + (probability ship sinks x √utility of ship sinking) = (98% x √$200,000,000) + (2% x √$0) = $13,859.29 13,939.82
fair premium of insurance policy = probability of loss x size of loss = 2% x $200,000,000 = $4,000,000
maximum premium = maximum utility - W* = $200,000,000 - W*
- to find W*:
- expected utility = √W
- $13,859.29 = √W
- W = $13,859.29²
- W = $192,080,000
maximum premium = $200,000,000 - $192,080,000 = $7,920,000
maximum willingness to pay = (fair premium + maximum premium) / 2 = ($4 million + $7.92 million) / 2 = $5.96 million
Financial capital, like money, is simply a tool. once financial capital is converted to economic capital (invested), it produces a resource that is Productive. Firms invest in their companies using financial capital.
Businesses employ capital to purchase additional machinery, structures, or materials, which they then use to produce things or offer services. Cash and investments can also be considered capital assets for a business. Its balance sheet includes a list of these assets.
The money cannot be used by managers to enhance dividends, cut prices, or grant themselves raises. They must put it to use in order to increase profits and assist the company make more gains in the future.
Debt is the first category. Companies obtain funding today, which they later remit with interest. Many business owners initially borrow money from family members or their credit cards. Once they establish a track record, they can apply for bank loans and Small Business Administration funding from the federal government. The company receives funds from investors in the form of equity, which is the second type of capital, in exchange for a future profit share. Specialty capital is the third category. It frequently serves as a means of purchasing time to increase revenue, for example, by postponing invoices.
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Answer:
Name , Date And the message
Explanation:
