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QUESTION 3 [30 MARII Tunacor fisheries is an established company which is looking to expand its fishing interests by purchasin: a 100% interest in Etosha
QUESTION 3 [30 MARII Tunacor fisheries is an established company which is looking to expand its fishing interests by purchasin: a 100% interest in Etosha Fishing. The Management of Tunacor Fisheries believes that expected returns from the acquisition of Etosha Fishing are dependent on the state of the economy. There is an equal chance of favourable and unfavourable states of the economy occurring and a 40% chance that the state of the economy will be neutral. The risk-free rate is 5% and there is no company or personal taxation. The following information is made available
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