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Oxford Technology has no debt. Its assets will be worth $411 million one year from now if the economy is strong, but only $275
Oxford Technology has no debt. Its assets will be worth $411 million one year from now if the economy is strong, but only $275 million in one year if the economy is weak. Both events are equally likely. The market value today of its assets is $262 million. What is the expected return of Oxford Technology stock without leverage?
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
