Order the answer to: On January 1, FinCorp Inc. completed its analysis of the

EssayParlour business-corporate-finance Order the answer to: On January 1, FinCorp Inc. completed its analysis of the

business-corporate-finance

Order the answer to: On January 1, FinCorp Inc. completed its analysis of the

Question On January 1, FinCorp Inc. completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 15-percent chance the stock price would be $150 in one year and an 85-percent chance the stock price would be $200. Six months later, FinCorp Inc. revised its estimated probabilities to a 35-percent chance of a stock price of $150 and a 65 percent chance of $200. If the market agrees with FinCorp Inc.’s revised probabilities, what is the expected change in stock price from January 1 to July 1? Assume the discount rate is zero.
Subject business-corporate-finance

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