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(20%) FIN307 stock has the following probability distribution of expected prices one year from now: State Probability Price 1 .25 $50 2 .40 $60 3

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(20%) FIN307 stock has the following probability distribution of expected prices one year from now: State Probability Price 1 .25 $50 2 .40 $60 3 .35 $70 If you require a risk premium of 5% and Rf is 4%. What is the price you are willing to pay today for FIN307? Assuming the stock will pay a dividend of $4 per share

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