Question: Given is a Decision Tree Diagram . The Payoffs 1-14 are given in the table below Part 1. In order to compute the value at
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Part 1. In order to compute the value at each of the following nodes, you would need to write a mathematical experession to compute the value . For the following question , you are asked to write the mathematical expression to compute the value at each of the following nodes, Reminder you are required to write the mathematical expression only, not the resulting computation value. You will be asked to enter be resulting value in Part II.
a) The mathematical experession to compute the value node I is
b) The matbatacal cyrnaots to compile the %aloe a node 3 Is
Part II. What is the resulting computation value at each of the following nodes.
(c) The value at node I is (in I decimal Place)
(d) The value at node 3 is (in I decimal Place)
(e) The value at node 4 is
(f) The value at node 6 is
¢ Total debt and equity will be equal to total assets, i.e. $120,650.
¢ Total debt is $60,400, if we deduct this from total debt and equity, we will get the amount of total equity. Total equity will be $60,250.
¢ Now, deduct common stocks from total equity, we will get the amount of retained earnings of $15,250. Calculate the retained earnings using the equation: Total debt and equity = Total debt+(Common stock+Retained earnings) S120,650 = 560,400 + ($45,000+Retained earnings) Retained earnings =5120,650-S60,400-S45,000 = 1515,2501
L0 Part I1. What is the resulting computation value at each of the following nodes c) The value at node I is d) The value at node 3 is c) The value at node 4 is t) The value at node 6 is (in I decimal place) (in 1 decimal place)
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