Use the Following Information to Answer the Question(s)below

question 13

Multiple Choice

Use the following information to answer the question(s) below. The risk-free rate of interest is 3% and the market risk premium is 5%.
-The value of the oil exploration division is closest to:

• A)$4500
• B)$7500
• C)$8750
• D)$10,000

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Definitions:

DDT

Dichlorodiphenyltrichloroethane, a synthetic pesticide that was widely used after World War II but later banned due to its harmful environmental effects.

Chemical Companies

Organizations involved in the production and business of chemicals and chemical products, which play a vital role in numerous sectors of the economy, including manufacturing, pharmaceuticals, and agriculture.

Colonization

The process by which a central system of power dominates the surrounding land and its components, often involving the settling of its population in a new area.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, the Eastern Bloc and the Western Bloc, after World War II, characterized by political, military, and economic competition.