Jenny just paid $16 today to buy a share of XYZ. Jenny forecasts that a dividend of $0.60 will be paid a year from now. Consider the following three possible scenarios for the shares price exactly 1 year from now (immediately after the dividend payment):

(i) Scenario 1: the share price is exactly analyst 1s estimated instrinsic value (i.e., $20) with a probability of 60%.

(ii) Scenario 2: the share price remains the same at $16 with a probability of 15%.

(iii) Scenario 3: the share price is exactly analyst 2s estimated intrinsic value (i.e., the answer in part (b)) with a probability of 25%. (d) Calculate the expected return for Jenny if she holds stock XYZ for 1 year under the assumptions stated above.

Please do it WRITTEN with ALL working out shown