You are considering investing in a cyptocurrency and have found a website that predicts the

following returns under different scenarios over the next year. What is the expected return

for this cyptocurrency? $($Please type your answer in decimals e$.$g$.10\mathrm{.}1\%$ should be shown as

$0\mathrm{.}101$

Answer:Trixie is evaluating the shares of Companies $Y$ and $Z.$ The companies are equal in risk, and

both pay out all annual earnings as dividends. Given the following forecast of annual

earnings per share over the next ten years, and assuming a discount rate of $14$ percent,

which company shares should have a higher value?

Select one:

a$.$ The shares will be valued equally, as the average EPS over the ten$-$year period is $$0\mathrm{.}10$ for both companies.

b$.$ Company Y shares will be more valuable, as the present value of the EPS stream is higher for Company Y$.$

c$.$ Company $Z$ shares will be more valuable, as the present value of the EPS stream is higher for Company $Z.$

d$.$ Company $Z$ shares will be more valuable, as the EPS is higher for year ten.