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MrRa [10]
3 years ago
15

An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.2 of a $15,000 l

oss, probability 0.15 of a $20,000 loss, probability 0.05 of a $40,000 profit, and probability 0.6 of breaking even (a profit of $0). What is the expected value of the profit? Group of answer choices
Business
1 answer:
lozanna [386]3 years ago
8 0

Answer:

$21,000

Explanation:

initial investment $25,000

we need to determine the expected value of every possibility:

  • $15,000 loss ⇒ 20% x $10,000 = $2,000
  • $29,000 loss ⇒ 15% x $5,000 = $750
  • $40,000 gain ⇒ 5% x $65,000 = $3,250
  • break even ⇒ 60% x $25,000 = $15,000

total expected value = $21,000

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With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers would be:_______.
SIZIF [17.4K]

The Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

<h3>What is a free trade?</h3>

This refers to an international business policies that occurs when goods and services can be bought and sold between countries without tariffs, quotas or other restrictions being applied.

This policy tends to increase the volume of international trade among member countries and also allow them to increase their specialization in their respective comparative advantages.

Hence, in the graph given, the Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

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4 0
1 year ago
Solaris, Inc. has 2000 shares of 5%, $10 par value, cumulative preferred stock and 50000 shares of $1 par value common stock out
lubasha [3.4K]

The annual dividend on the preferred stock is $1000 in total.

<h3><u>What is an Annual dividend?</u></h3>
  • An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
  • A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
  • The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.

Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.

The company has 2000 shares of 5% that is: (2000*5)/100 = 100

with a par value of $10, which becomes:

100*$10 = $1000.

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3 0
2 years ago
last year, jarod left a job that pays $80,000 to run his own bike repair shop. jarod’s shop charges $65 for a repair, and last y
irinina [24]

The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.

It should be noted they the formula for calculating accounting profit will be:

= Total revenue - Explicit cost

Total revenue will be:

= $65 × 4000

= $260,000

Explicit cost is the direct cost that a business spends. This will be:

= $60000 + $120000 + $25000

= $205,000

Therefore, the accounting profit will be:

= $260000 - $205000

= $55,000

The accounting profit is $55000.

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6 0
2 years ago
Which of the following is the main incentive for a manufacturer to sell a product?
8_murik_8 [283]
D. making profits on sales
7 0
3 years ago
Genetic Innovations, LP, is a limited partnership. The partners sign an agreement purporting to state how the firm’s profits and
Gnom [1K]

Answer:

a. according to the agreement.

Explanation:

Profits or losses, made by a partnership firm shall be divided among its partners in accordance with terms specified in the agreement.

However, in absence of any written or oral agreement among the partners, profits and losses shall be distributed equally among the partners.

6 0
3 years ago
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