Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Consider an entrepreneur who needs a $500 loan to invest in a risky project that produces revenue of $800 with probability 0.6 and revenue $0 otherwise. What is the minimum collateral the bank needs to charge this borrower to persuade him not to borrow if the loan repayment is $575?

Answer

$295.33

$195.33

$337.5

$435

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946316

Have any Question? 


Related Questions in Basic Finance

Go to wwwbloombergcomnewseconomy and locate an article

Go to www.bloomberg.com/news/economy/ and locate an article related to a recent Federal Reserve action. Write a brief summary of the article, and explain what impact it is likely to have on the economy and you as an indi ...

Net assets and employees retirement fundthe city of

Net Assets and Employees' Retirement Fund The City of Sweetwater maintains an Employee's Retirement Fund, a single-employer, defined benefit plan that provides annuity and disability benefits. The fund is financed by act ...

1 describe integrative management be specific concerning

1. Describe "integrative management." Be specific concerning the relationship between functionality and process. 2. In terms of enterprise extension, describe the importance of the information sharing and process special ...

1 what is business culture does national culture affect

1. What is business culture? Does national culture affect business culture? Discuss some implications of national culture for business culture. 2. Discuss how national culture affects the business culture and the busines ...

Gruber corp pays a constant 740 dividend on its stock the

Gruber Corp. pays a constant $7.40 dividend on its stock. The company will maintain this dividend for the next 8 years and will then cease paying dividends forever. The required return on this stock is 12 percent. What i ...

1 what is the difference between real property and personal

1. What is the difference between real property and personal property? 2. What is meant by an estate? 3. How can a leased fee estate have a value that could be transferred to another party? 4. What is an abstract of titl ...

A random sample of the birth weights of 186 babies has a

A random sample of the birth weights of 186 babies has a mean of 3103 g and a standard deviation of 691 g. Construct a 98% confidence interval estimate of the mean birth weight for all such babies. What is the confidence ...

If a firm were contemplating increasing the cash discount

If a firm were contemplating increasing the cash discount it offers its credit customers for early payment, what key variables would need to be considered when quantitatively analyzing this decision? How do the variables ...

1 tall trees inc is using the net present value npv when

1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the pr ...

As in ada suppose that each expression must have a unique

As in Ada, suppose that each expression must have a unique type, but that from a subexpression, by itself, all we can deduce is a set of possible types. That is, the application of function E1 to argument E2, represented ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro