A Geneticist Developed a New Type of Pest-Resistant Walnut Tree

question 52

Multiple Choice

A geneticist developed a new type of pest-resistant walnut tree. These walnut trees produce 75% of pest-resistant walnut trees and 25% of susceptible (not resistant) trees when two resistant trees are crossed. If a grower crossed 100 such pairs of trees for 100 offspring, she will get:

• A)exactly 70 resistant trees.
• B)somewhere between 67 and 73 resistant trees.
• C)somewhere between 64 and 73 resistant trees.
• D)The answer cannot be determined.

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Definitions:

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and satisfy its investors.

Leveraged Value

Utilizing a range of financial tools or leveraging debt to amplify the possible gains from an investment.

Capital Structures

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, constituting how a firm finances its overall operations and growth.

Tax Shelters

Investment strategies or financial arrangements used to minimize tax liabilities, often by deferring or reducing taxable income.