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A consumer is not risk averse. She is offered a chance to pay $20 for a lottery ticket that will give her a prize of
A consumer is not risk averse. She is offered a chance to pay $20 for a lottery ticket that will give her a prize of $150 with probability 0.06, a prize of $100 with probability 0.1, and no prize with probability 0.85. If she understands the odds and makes no mistakes in calculation, she will buy the lottery ticket.
Question 8 (2 points) Andoubtable is a corporation with an EBIT of $24 million and a corporate tax rate of 25%. Andoubtable has a total debt of $40 million, and excess cash of $8 million. If its book value of equity is $72 million, what is Andoubtable's return on invested capital (ROIC)? 15% 17% O 16% a 23% 6%
A consumer is not risk averse. She is offered a chance to pay $20 for a lottery ticket that will give her a prize of $150 with probability 0.06, a prize of $100 with probability 0.1, and no prize with probability 0.85. If she understands the odds and makes no mistakes in calculation, she will buy the lottery ticket.
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