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Calculate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.10 per share for the period, with

Calculate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.10 per share for the period, with the following prices and associated probabilities forecast at the end of the period:

Probability

0.2

0.15

0.25

0.3

0.1

Price

$15

$18

$21

$23

$25

The return on comparable stocks is 7%.

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