Below Is a Table Showing the Five Department Heads in Carlton-Manning's

question 51

Multiple Choice

Below is a table showing the five department heads in Carlton-Manning's San Jose and Utica (N.Y.) regional offices, along with each department head's forecast of sales in the upcoming quarter.One person from the group will be randomly chosen to make a sales presentation.Determine the conditional probability that the person selected is from the San Jose office, given that the person forecasts a decrease in sales.

• A).5
• B).333
• C).667
• D).4
• E).125

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Definitions:

Investment Project

A project undertaken by an individual or company involving an investment of resources aimed at generating financial returns.

Cost Of Capital

The rate of return that a business must achieve to generate value for its investors, essentially the cost of raising funds through debt or equity.

Dividend Growth Model

A method for determining the value of a stock by using predicted dividends and discounting them back to their present value.

Cost Of Equity

The return that equity investors require on their investment in the firm.