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If a company using financing has a 60% chance of a $75,000 return under normal conditions but a 40% chance of a $20,000?

return when money is tight and borrowing costs are higher what is the expected return for this firm ?

a) $53,000

b) $75,000

c) $40,000

d) $25000

Accounting Company Liaison Economics Finance
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/07/09
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Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

Correct answer is A.53000..................

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