Use the Following Data to Answer Questions 88-100 -Refer to the Data on Expected Demand for Weston Gadgets,Inc

question 53

Multiple Choice

Use the following data to answer questions 88-100. $$\begin{array}{l} \quad \quad \quad \quad \quad \quad \quad \quad \text { Expected Demand for Weston Gadgets, Inc. }\\\begin{array} { | l | l | l | l | } \hline \text { Decision Alternative } & \text { Low 35\% } & \text { Medium 30\% } & \text { High 35\% } \\\hline \text { Outsource } & \$ 16.00 \text { million } & \$ 28.00 \text { million } & \$ 66.00 \text { million } \\\hline \text { Build capacity } & \$ 4.00 \text { million } & \$ 32.00 \text { million } & \$ 26.00 \text { million } \\\hline \text { Do nothing } & \$ 9.00 \text { million } & \$ 18.00 \text { million } & \$ 66.00 \text { million } \\\hline\end{array}\end{array}$$
-Refer to the data on Expected Demand for Weston Gadgets,Inc.Based on the Hurwicz criterion,what is the payoff for the option to do nothing if you used the coefficient of realism of 0.6?

• A)$46.00 million
• B)$20.80 million
• C)$43.20 million
• D)$33.20 million

Evaluate the effectiveness of the DuPont system in assessing return on assets.

Calculate and interpret the debt ratio and its implications on a firm's financial structure.

Assess the liquidity and profitability of a firm using ratio analysis.

Understand how changes in operating activities, investing activities, and financing activities affect cash flow.

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