Q1. There is a 60% chance that the economy will be good next year and a 40% chance that it will be bad. If the economy is good, there is a 70% chance that XYZ Incorporated will have EPS of $5.00 and a 30% chance that their earnings will be $3.50. If the economy is bad, there is an 80% chance that XYZ Incorporated will have EPS of $1.50 and a 20% chance that their earnings will be $1.00. What is the firm’s expected EPS? A) $3.29. B) $5.95. C) $2.75.
Q2. There is an 80% chance that the economy will be good next year and a 20% chance that it will be bad. If the economy is good, there is a 60% chance that XYZ Incorporated will have EPS of $3.00 and a 40% chance that their earnings will be $2.50. If the economy is bad, there is a 70% chance that XYZ Incorporated will have EPS of $1.50 and a 30% chance that their earnings will be $1.00. What is the firm’s expected EPS? A) $2.00. B) $4.16. C) $2.51.
Q3. There is a 90% chance that the economy will be good next year and a 10% chance that it will be bad. If the economy is good, there is a 60% chance that XYZ Incorporated will have EPS of $4.00 and a 40% chance that their earnings will be $3.00. If the economy is bad, there is an 80% chance that XYZ Incorporated will have EPS of $2.00 and a 20% chance that their earnings will be $1.00. What is the firm’s expected EPS? A) $5.40. B) $2.50. C) $3.42.
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发表于 2009-1-9 09:33
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