Exhibit 716
Use the Information Below for the Following Problem(S)
Based

question 28

Multiple Choice

Exhibit 7.16
Use the Information Below for the Following Problem(S)
Based on the economic outlook for the industry a financial analyst covering Top Choice Corporation has determined the following three possible returns given three different states of the economy over the next period.
$$\begin{array} { c c } \text { Prabability } & \text { Return } \\\hline 0.25 & 0 .02 \\0.50 & 0.14 \\0.25 & 0.30\end{array}$$
-Refer to Exhibit 7.16.What is the expected return for Top Choice Corporation?

• A) 5.2%
• B) 10.4%
• C) 13.7%
• D) 15.0%
• E) 17.6%

---

Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation and therefore have a financial stake in its performance.

Ultra Vires Act

An action taken by a corporation or its officers that exceeds the powers granted by its charter or law.

Implied Powers

Powers not explicitly stated in the constitution or legal framework but are deemed necessary to implement the expressed powers.

Publicly Traded

describes a company whose shares are bought and sold on stock exchanges, available to general investors.