Use the Information for the Question(s)below

question 89

Multiple Choice

Use the information for the question(s) below.
If it is managed efficiently,Luther Industries will have assets with market value of $100 million,$300,million,or $500 million next year,with each outcome being equally likely.Managers may,however,engage in wasteful empire building which will reduce the firm's market value by $20 million in all cases.Managers may also increase the risk of the firm,changing the probability of each outcome to 50%,20%,and 30% respectively.
-If its managers engage in empire building,then the expected market value of Luther's assets is closest to:

• A)$260 million.
• B)$280 million.
• C)$240 million.
• D)$300 million.

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Definitions:

Ethernet

A family of computer networking technologies commonly used in local area networks (LAN), metropolitan area networks (MAN) and wide area networks (WAN).

Federal Communication Commission

A United States government agency that regulates interstate and international communications by radio, television, wire, satellite, and cable.

Internet Access

The ability of individuals or organizations to connect to the Internet through a computer or other device.

RFID

Radio-Frequency Identification, a technology that uses electromagnetic fields to automatically identify and track tags attached to objects.