Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Q55 KYT INC Kaplan kit
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
John Moffat.
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- November 28, 2013 at 9:53 am #148222
Dear Sir,
Thank you for you reply on my other question . I am stuck at q55 in Kaplan kit part (d)
probability recession slow growth rapid growth
Total values
KYT 42 55 75
Tulen 63 80 120Kyt has 45 debt and tulen has 10 debt.
answer showsexpected value I dont understand how this expected value is found in merger .
November 28, 2013 at 10:07 am #148226Are you clear as to how they have found the total values for each economic state? (e.g recession = 42 + 63 = 105)
If you are, then the expected value is found by multiplying each total by the probability and then adding up.
So…..(105 x 0.15) + (135 x 0.65) + (195 x 0.20) = 142.5
November 28, 2013 at 10:10 am #148228yes thank you so much I wasted 3 hours on this . many thanks.
November 28, 2013 at 10:16 am #148231You are welcome 🙂
(Don’t waste three hours again – ask on here and try something else in the meantime 🙂 ) - AuthorPosts
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