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a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10,
a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and oa = $3.60; E(EPSB) = $4.20, and ob = $2.98. Round your answer to the nearest cent. Firm A: EPSA Firm B: EPSB Firm C: EPSC Probability 0.1 0.2 0.4 0.2 0.1 ($1.67) $1.80 $5.10 $8.40 $11.87 (1.20) 1.30 4.20 7.10 9.60 (2.52) 1.35 5.10 8.85 12.72 E(EPSc): $ b. You are given that oc = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Round your answers to two decimal places. The most risky firm is -Select- A). a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and oa = $3.60; E(EPSB) = $4.20, and ob = $2.98. Round your answer to the nearest cent. Firm A: EPSA Firm B: EPSB Firm C: EPSC Probability 0.1 0.2 0.4 0.2 0.1 ($1.67) $1.80 $5.10 $8.40 $11.87 (1.20) 1.30 4.20 7.10 9.60 (2.52) 1.35 5.10 8.85 12.72 E(EPSc): $ b. You are given that oc = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Round your answers to two decimal places. The most risky firm is -Select- A)
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