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miss Akunina [59]
3 years ago
12

Two companies, Rothko, LLC, and Calder & Co., are racing each other to be the first to apply new deep-water drilling technol

ogies to an oil deposit. If Rothko, LLC gets to the oil first, its stock will increase by 63%, and Calder & Co.\'s stock price will not change at all. If Calder & Co. get to the oil deposit first, its stock price will increase by 37%, and Rothko\'s stock price won\'t change at all. These are the only two companies trying to tap the deposit.
The chance that Calder & Co. arrives first is 63%.

NOTE: All answers should be to two decimal places.


1.What is the expected payoff of investing $1000 in Rothko, LLC?2.What is the expected payoff of investing the same amount in Calder & Co.?3.What is the expected payoff of investing $500 in Calder & Co. and $500 in Rothko, LLC?
Business
1 answer:
wolverine [178]3 years ago
7 0

Answer:

Consider the following calculations

Explanation:

Expected pay off of investing 1000 in Rothko,LLC= probability of getting oil stock *increase in value ofstock= .37* 63% of 1000

= .37*630= 233.1

Similarly

Expected pay off of investing 1000 in Calder & co = .63* 37% of 1000= .63* 370= 233.1

Of investing 500 in each

Expected pay off= .37 * 63% of 500 + .63* 37% of 500

= .37* 315 + .63* 185= 233.1

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Answer:

Option E.

Explanation:

In free trade, a country with a comparative advantage in a good produces that good in the long-term. Therefore, if these people are working in an industry in which it has a higher opportunity cost i.e. it does not have a comparative advantage; they will eventually see job loss or fall in income or both. On other hand, when they purchase goods which has lower opportunity costs in foreign, they get access to these at a lower price and can purchase a higher quantity. So, these people are both harmed and benefitted by free trade.

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3 years ago
Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and
Vesna [10]

Answer:

decrease by 305,000 dollars

Explanation:

Sales            3,300,000

Variavle cost:

materials          710,000

labor                760,000

overhead        560,000  

S&A             <u>    330,000    </u>

total             (2,360,000)

contribution    940,000

<u>fixed cost:</u>

tracable          <u>     (635,000)</u>

operating income 305,000

allocated          <u>    (560,000)</u>

net                         (255,000

The canoes division absorbs 305,000 of the common fixed cost

If discountinued the company as a whole will see their net income decreases by this amount. In the short run, the company should only discontinued a project or division when it is not able to afford their own cost. That is not the case, canoes division afford their own cost is the allocated from other activities of the company that generates this loss.

4 0
3 years ago
Even though he is not a manager, Mr. Brate is the one to see in the company when there is something you need. He will get it qui
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Answer:

Informal organization

Explanation:

The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. The informal organization evolves, and the complex social dynamics of its members also.

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3 years ago
Company A has sales of $500,000, variable costs of $350,000, and fixed costs of $150,000. Company A has ______.
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Company A has: Reached the break-even point  and Company A's contribution margin equals the fixed costs.

<h3>What is break even point?</h3>

Break even point is the point in which a company neither make gain or loss.

Based on the information given company A  has reached the break-even point because there is no gain or loss.

Company A's contribution margin also equals the fixed costs.

Contribution margin=Sales-Variables cost

Contribution margin=$500,000-$350,000

Contribution margin=$150,000

Contribution margin equal fixed cost of the amount of $150,000.

Inconclusion Company A has: Reached the break-even point  and Company A's contribution margin equals the fixed costs.

Learn more about break even point here:brainly.com/question/9212451

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During high school, Dana volunteered with a local charity that protects sea turtle nests. She would scour the beaches for new ne
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A

Explanation:

All the answers seem wrong

8 0
2 years ago
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