you are considering acquiring the value supply of Empire Corporation. The present value per offer is Rs.180. You expect the profit a year henceforth to be Re.8.00. You expect the value per offer of Empire Corporation stock a year thus to have the accompanying likelihood conveyance.
Value a year henceforth Rs.175 180 200
Likelihood 0.2 0.3 0.5
(a) What is the normal value per offer a year henceforth?
(b) What is the likelihood dissemination of the rate of profit for Empire Corporation 's value stock?