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Business, 02.12.2020 04:00 crossoverking07

1. Calculate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.20 per share for the period, with the following prices and associated probabilities forecast
at the end of the period (10 pts.)
Probability 0.3
0.1
0.2
0.3
0.1
Price
$40 $45 $55 $62 $70
*The return on comparable stocks is 8%.

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