Your company has developed a new energy drink and you are trying to decide whether to sell the recipe, or make and distribute it yourself. A company will pay you $9 million for the recipe. If your company makes the drink itself, it will cost $12 million to build a factory and distribution network. Your analytics and marketing teams tell you there is a 30% chance the market response will be great, a 60% chance the market response will be decent with gross earnings of $15 million, and a 10% chance the market response will be poor with gross earnings of $5 million. If the market response is great, there is a 30% chance the drink will be the new fad and you will make gross earnings of $50 million, a 60% chance the gross earnings will be $40 million, and a 10% chance the gross earnings will be $20 million. What is the expected value from the Perfect Information Tree (just the perfect information tree, not EVPI).

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Microsoft's stock price peaked at 6118% of its ipo price more than 13 years after the ipo suppose that $10,000 invested in microsoft at its ipo price had been worth $600,000 (6000% of the ipo price) after exactly 13 years. what interest rate, compounded annually, does this represent? (round your answer to two decimal places.)

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.