Answer:
Pay-off Probability EV Payoff - Mean (Pay-off - Mean)2.P
$ $
0 0.50 0 -190 18,050
200 0.20 40 10 20
500 0.30 150 210 13,230
Mean 190 Variance 31,300
Standard deviation = √ Variance
Standard deviation = √ 31,300
Standard deviation = 176.92
Explanation:
In this case, we need to determine the mean, which is the product of pay-off and probability. Then, we will deduct the mean from the pay off. raise the difference between the pay-off and mean to power 2 and multiply by probability. This gives the variance of the pay-off. The square root of the variance of the pay-off gives the standard deviation of the pay-off.
Answer:
B) $125,000
Explanation:
Price discrimination strategy refers to charging each customer the maximum amount of money he/she is willing to pay for a product.
In this case, the concert promoters should charge $150 per ticket to 1,000 die hard fans = $150,000 in revenue.
Then it should charge only $50 per ticket to 500 casual fans = $25,000 in revenue.
Total revenue = $150,000 + $25,000 = $175,000
<u>minus total costs = ($50,000) </u>
Net income = $125,000
It would cost me a fortune tbh like software e cost is like the best thing to ever exist so you won’t regret nothin
Answer:
Book Value per share is $2.96 and Earnings per share is $1.78
Explanation:
The market-to-book ratio is:
<u>Market Value </u> = 3.31 times
Book Value
The market value of the stock is $9.80 per share. Therefore, to calculate the Book Value, we make the Book Value subject and divide the ratio by Market Value per share:
Book Value per Share = <u>Market Value per share</u>
Market-to-Book ratio
= <u>9.80</u>
3.31
= $2.96
The PE ratio is:
<u> Price </u> = 5.51 times
Earnings
The price of the stock is $9.80 per share. Therefore, to calculate the Earnings per share, we make the Earnings subject and divide the PE ratio by Price of stock:
Earnings per share = <u> Price </u>
PE Ratio
= <u>9.80</u>
5.51
= $1.78