Use a binomial tree to value to following option. Assume rf = 0.045, rp = 0.14, ? = 0.20, E(CF1 ) = $62 million, g = 0.03, time horizon = 2 years, binomial period = 1 year, and
cost = $500 million. What is the value of this project option?
A) $47 million
B) $57 million
C) $67 million
D) $77 million
C
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When surveyed about the behavior of managers, employees reported which of the following as the most common unethical behaviors witnessed?
a. sexual harassment b. blaming mistakes on others c. theft or falsifying expense reports d. not keeping promises
Define the meaning of "pathos."
An overall management philosophy introduced by Goldratt to help organizations continually achieve their goals best describes
A) six sigma. B) theory of constraints. C) scrum. D) TMAP.
Which of the following statements is true of the firms that operate in several different countries?
A. The currency values of several different countries do not fluctuate. B. Cash flows of various parts of a multinational corporate system are always denominated in the same currencies. C. Institutional differences among countries can cause significant problems in coordination of subsidiaries. D. No nation places constraints on the transfer of corporate resources. E. Within homogeneous geographic regions, different countries have uniform cultural heritages that shape values and influence the role of business in the society.