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11. Tina has $3,000 that she wishes to invest for one year. She has narrowed her choices down Buy bonds of Risky Mining Ltd. These pay 14.7% Interest unless Risky goes back Tina assesses her prior probability of Risky Mining lid going bankrupt as 0:40. The Savings bonds will pay off regardless of whether Risky goes bankrupt or not. Tha) ity for money is given by the square foot of the amount of her gross payoll. That b. Can the risk of a por to one of the following two actions in which case Tina will lose her principal and interest Buy savings bonds, paying 6.2% interest , if she buys the savings bonds her gross payoff is $3,186, etc. Tina is a rational de sion maker Required a. Based on her prior probabilities, which action should Tina take? Show your calculation b. Before making a final decision, Tina decides she needs more information. She obtain Risky Minings current financial statements and examines its debt-equity ratio. This allo can be either "HI" or "LO. Upon calculating the ratio, Tina observes that it is LOO the basis of her prior experience in bond investments, Tina knows the following cond tional probabilities: Future State NB (Not Bankrupti 8(Bankrupt) Debt-to-Equity Ratio LO HI 0.50 0.50 0.05 0.95 Which action should Tina now take show your calculations, taken to two decimal plan Chapter CAnew accounting standard requires that Risky Mining Ltd. spension liabilities must now be measured in the financial statements at their expected discounted present values lie, value in use), instead of the previous pay-as-you-go accounting under which den sion expense was based on amounts paid out for pensions during the period with no balance sheet liability recorded. Evaluate (in words only the likely impact of the new standard on the main diagonal probabilities of the information system in part b