Use the Information for the Question(s)below

question 86

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% 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)$360 million
• B)$275 million
• C)$85 million
• D)$160 million

Recognize the impact of short-term financial policies on liquidity and cash management.

Understand the relationship between marketable securities investments and short-term financial policies.

Identify the sources of cash in short-term financial management.

Understand the difference between fluid and crystallized intelligence, including how each type changes with age.

---

Definitions:

Slavery

The condition in which individuals are owned by others, who control where they live and at what they work.

Mid 19th Century

The period from 1850 to 1869, marking the middle segment of the 19th century, characterized by industrialization, social reform, and political upheaval in many countries.

Regional Differences

Variations in cultural, economic, and social characteristics that distinguish one geographic area or region from another.

Reversible Figure-ground

A visual perception phenomenon where an image can be seen in more than one way, depending on which element (figure) is perceived as the focus and which as the background.