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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) =
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,= $3.61, E( EPSn) = $4.20, and S2.96 Probability 0.1 0.2 0.4 0.2 0.1 Firm A: EPS Firm B: EPS Firm C: EPS ($1.50) $1.80 $5.10 840 $11.0 4.20 5.10 6.90 8.85 9.60 12.60 (1.20) (2.40) 1.50 1.35 b. You are given that c-$4.11. Discuss the relative riskiness of the three firms' earnings
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