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RST Corp plans to expand its business into Canada. However, it is concerned with two independent types of Country Risk in the next year: .

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RST Corp plans to expand its business into Canada. However, it is concerned with two independent types of Country Risk in the next year: . a 15% chance that the Canadian government will impose a special tax on funds remitted to the parent company a 15% chance that the Canadian government will force a sale of the subsidiary to a local company . What is the likelihood that the Canadian government will impose the special tax while allowing RST to continue to operate the subsidiary? 2.25% 12.75% o o o 70.00% 72.25% RST Corp plans to expand its business into Canada. However, it is concerned with two independent types of Country Risk in the next year: . a 15% chance that the Canadian government will impose a special tax on funds remitted to the parent company a 15% chance that the Canadian government will force a sale of the subsidiary to a local company . What is the likelihood that the Canadian government will impose the special tax while allowing RST to continue to operate the subsidiary? 2.25% 12.75% o o o 70.00% 72.25%

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