Question 1 (2 points) Priti's Fine Dining is a restaurant that is expecting the following performance next year. There is a 40% probability of a boom market next year, and if that occurs, Priti share value will increase to $120 and they will pay a $3 dividend. There is a 30% probability of a normal economy and if that occurs, Priti's share value will grow to $80 and they will pay a $2 dividend. There is a 30% probability of a recession and if that occurs, Priti's share value will drop to $10 and they will pay a dividend of $1. The stock is selling today for $50. What is the expected rate of return of Priti's Fine Dining? 46.00% 28.00% 50.00% 54.20% Previous Page Next Page Page 1 of 25