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1. The share value of AAA is expected to be $50 one year from today if no losses occur. There is a 10% chance that

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1. The share value of AAA is expected to be $50 one year from today if no losses occur. There is a 10% chance that AAA will have a $10 per share loss. Discount rate = 10%. 1. What is the expected cash flow one year from now? (3 pts.) 2. Estimate AAA Enterprises value today using per share data. (3 pts.) 3. What is the rate of return if AAA suffers a loss? (4pts.)

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