Use the Information for the Question(s)below

question 27

Multiple Choice

Use the information for the question(s) below.
Wildcat Drilling is an oil and gas exploration company that is currently operating two active oil fields with a market value of $200 million each.Unfortunately,Wildcat Drilling has $500 million in debt coming due at the end of the year.A large oil company has offered Wildcat drilling a highly speculative,but potentially very valuable,oil and gas lease in exchange for one of their active oil fields.If Wildcat accepts the trade,there is a 10% chance that Wildcat will discover a major new oil field that would be worth $1.2 billion,a 15% chance that Wildcat will discover a productive oil field that would be worth $600 million,and a 75% chance that Wildcat will not discover oil at all.
-What is the overall expected payoff to Wildcat from the speculative oil lease deal?

• A)$210 million
• B)$275 million
• C)$85 million
• D)$160 million

---

Definitions:

Skills

Abilities or expertise developed through practice or training that enable a person to perform tasks effectively.

Personal Mission Statement

A concise summary of an individual's core values and purposes, guiding their behaviors and decisions.

Self-Disciplined

The ability to control one's feelings and overcome weaknesses; acting according to what one thinks is right despite temptations to abandon it.

Attaining Goals

The process of setting, pursuing, and achieving objectives or desired outcomes.