SCENARIO 4-2
an Alcohol Awareness Task Force at a Big-Ten

question 44

Short Answer

SCENARIO 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to
ask them whether they went bar hopping the weekend before the midterm or spent the weekend
studying, and whether they did well or poorly on the midterm. The following result was obtained. $$\begin{array} { | l | l | l | } \hline & \text { Did Well on Midterm } & \text { Did Poorly on Midterm } \\\hline \text { Studying for Exam } & 80 & 20 \\\hline \text { Went Bar Hopping } & 30 & 70 \\\hline\end{array}$$
-Referring to Scenario 4-2, what is the probability that a randomly selected student did well on the midterm or went bar hopping the weekend before the midterm? a) $30 / 200$ or $15 \%$
b) $( 80 + 30 ) / 200$ or $( 30 + 80 ) / 200$ or $55 \%$
c) $( 30 + 70 ) / 200$ or $( 70 + 30 ) / 200$ or $50 \%$
d) $( 80 + 30 + 70 ) / 200$ or $( 110 + 100 - 30 ) / 200$ or $90 \%$

Understand the valuation of assets and liabilities on a Statement of Financial Affairs.

Calculate total liabilities with priority in bankruptcy cases.

Determine the payout to unsecured creditors in liquidation scenarios.

Familiarize with the classification sections in a Statement of Financial Affairs.

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Definitions:

Financing

The act of providing funds for business activities, making purchases or investing.

Debt

Money owed by one party to another, usually reflected as loans, bonds, or lines of credit that must be repaid with interest.

Cost Of Debt

The effective interest rate that a company pays on its total debt, serving as a measure of the expense of borrowing.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all payments of interest and principal against the current market price.