As an analyst for Bridgeport Inc., you are responsible for many firms, including ADFC. Currently you have a "hold" recommendation on

ADFC. The current price of ADFC is $$143.$ You have conducted an extensive analysis of the industry and you feel that the probability

the firm will capture a substantial share of the new market is $30$ percent. If the firm is able to capture the new market, you are

expecting earnings to grow at a rate of $45$ percent per year for the next five years. In that case, the stock price would rise to $$223$ due

to the unusually high growth rate of future earnings. However, you feel there is a $40-$percent probability that the firm will face serious

difficulties in the near future, in which case the stock price will fall to $$103,$ and the earnings growth rate will drop to $3$ percent. There

is a $30-$percent chance that nothing will change for the firm and its earnings growth rate will remain at $12$ percent.

Calculate the expected price in the future. $($Round intermediate calculations to $4$ decimal places, e$.$g$.31\mathrm{.}2125$ and final answer to $0$ decimal

places, e$.$g$.145.)$

Expected price $

Should you change your recommendation?

The recommendation

be changed.