A manufacturer of headache medicine claims it is 70 percent effective within a few minutes. That is, out of every 100 users 70 get relief within a few minutes. A group of 12 patients are given the medicine. If the claim is true, what is the probability that 8 have relief within a few minutes?
A project has the following annual cash flows:
CF = 24,000; CF = 12,700; CF = 15,000; CF = -10,000
1 2 3 4
What is the maximum amount a firm should invest in the project if it requires a risk adjusted, 12% rate of return?
Assume a small country imposes tariff.
After the tariff, the consumer surplus will decrease by: AF
Suppose that JPK, Inc. paid dividends of $80,000 to its preferred shareholders and $40,000 to its common shareholders during 2000. The company had 20,000 shares of common stock issued and outstanding on 1/1/00, issued 7,000 more shares on 6/1/00, and paid a 10 percent stock dividend on
8 /1/00. Assuming that JPK had $150,000 in net income, what is the firm's basic earnings per share (EPS) for 2000?
Suppose we roll a die and let A be the event that the number of spots showing on the die is 6. We then toss a coin and let B be the event that the coin comes up heads. Then, the P(A and B) is
