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:

Unpredictable

Not able to be predicted; capable of changing or varying without apparent reason or pattern.

Dangerous

Refers to something that is likely to cause harm or injury.

Arab World

A region comprising 22 Arabic-speaking countries in the Middle East and North Africa that share cultural, historical and linguistic ties.

Compassion And Humanity

The recognition of suffering in others coupled with the desire to alleviate it, reflecting the qualities central to human kindness.