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Wollrum Techo (w has no debt is esses will be worth $420 million one year from now the economy strong, but only 5274 million one

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Wollrum Techo (w has no debt is esses will be worth $420 million one year from now the economy strong, but only 5274 million one year the economy is weak. Both events werely help the market i Inday of bin 5278 milion What is the expected return of WT slock without loverage? 6. Supporto mark tree interest tuto la 5%. WT berlow 5106 million today at this rate and use the proceeds to pay an immediate cash dividend, what will be the matet e of the equity just after the end according to c. What is the expected room of WT stock after the dividend is paid in part n. The univered uspected totum of WT stocks Round to two decimal pes) Wolfrum Technology (WT) has no debt. Its assets will be worth $420 million one year from now if the economy is strong, but only $274 million in one year if the economy is weak Both events are equally likely. The market value today of its assets is a. What is the expected return of WT stock without leverage? $ $274 4 million b. Suppose the risk-free interest rate is 5% HWT borrows 5105 million today at this rate and uses the proceeds to pay an immediate cash dividend, what will be the market value of its equity just after the dividend is paid according to MM? c. What is the expected return of WT stock after the dividend is paid in part (b)? a. The unlevered expected return of WT stock is % (Round to two decimal places)

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