4 The common stock of Leaning Tower of Pita Inc.. a restaurant choin, will generate payoffs to investors next year, whic

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4 The Common Stock Of Leaning Tower Of Pita Inc A Restaurant Choin Will Generate Payoffs To Investors Next Year Whic 1 (44.54 KiB) Viewed 106 times

4 The common stock of Leaning Tower of Pita Inc.. a restaurant choin, will generate payoffs to investors next year, which depend on the state of the economy, as follows: 10 Do Boon Nornal economy Recession Dividend $8 4 0 Stock Price $240 90 0 The company goes out of business if a recession hits. Assume for simplicity that the three possible states of the economy are equally likely. The stock is selling today for $80. References 0-1. Calculate the rate of return to Leaning Tower of Pita shareholders for each economic state (Negative amounts should be Indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places.) Rate of return Boom Normal Oconomy Recession % 0-2. Calculate the expected rate of return and standard deviation of return to Leaning Tower of Pita shareholders. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)