Previous Page Next Page Page 25 of 26 Question 25 (4 points) Suppose you have the following table. What is the expected return to Basel Inc.? Probability Basil Inc. Returns 0.4 -2.20% 0.25 4.90% 0.35 7.80% 3.1% 4.7% -2.2% 06,9% Question 26 (4 points) Leghat Inc. just paid a dividend of $2.2. It is expected to grow at 20% for 2 years and then settle down to a regular growth rate of 4%. The fair rate of return is 15%. What is the stock of Leghat Inc. worth? $27 $30 $28 $29 Previous Page Next Page Page 26 of 26