State Company Had Determined Its Earnings Before Interest and Taxes

question 61

Multiple Choice

State Company had determined its earnings before interest and taxes (EBIT) in four possible states of the world.In the Great State,EBIT will be $3,000,000 and in the Good,Normal and Poor States EBIT will be $2,000,000,$1,500,000,and $1,000,000 in that order.If each state has an equal probability of occurring,then what is State Company's expected EBIT?

• A) $3,000,000
• B) $2,500,000
• C) $1,875,000
• D) none of the above

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Definitions:

Carbohydrate-Digesting Enzyme

Enzymes that catalyze the breakdown of carbohydrates into simple sugars, facilitating their absorption and utilization by the body.

Pancreatic Amylase

An enzyme produced by the pancreas that breaks down starches into sugars during digestion.

Salivary Amylase

An enzyme found in saliva that begins the process of starch digestion by breaking down complex carbohydrates into simpler sugars.

Intestinal Absorption

The process by which nutrients from food are absorbed through the small intestine's lining into the bloodstream.