Company ABC common stock is currently selling for $25 per share. The security analyst have assigned the following probability distribution to the price of (and rate of return by) the ABC stock one year from now. Assuming that ABC is not expected to pay dividends this year, determine the expected rate of return on ABC stock Price Rate of Return Probability $15 -15% 0.25 $20 0% 0.20 $25 +15% 0.30 $30 +25% 0.25 • 15% • 10% • 7% • 3%

Jen heard that the bank where she kept her money was going to close for good. jen said she wasn't worried

The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.

Refer to the payoff matrix. suppose that speedy bike and power bike are the only two bicycle manufacturing firms serving the market. both can choose large or small advertising budgets. is there a nash equilibrium solution to this game?