An Analyst Computes the Intrinsic Values and Probabilities for Each

question 1

Multiple Choice

An analyst computes the intrinsic values and probabilities for each of the indicated scenarios in the following table.Determine the expected value per share. $$\begin{array} { | l | l | l | l | } \hline \text { Scenario } & \begin{array} { l } \text { Intrinsic value } \\\text { (millions) }\end{array} & \text { Probability } & \\\hline \begin{array} { l } \text { Success in both domestic } \\\text { and international markets }\end{array} & 1200 & 0.4 & \\\hline \text { Success in domestic market only. } & 600 & 0.2 & \\\hline \text { Success in int emational market only. } & 800 & 0.3 & \\\hline \text { Failure in both markets } & 0 & 0.1 & \\\hline { \text { Expected intrinsic value (millions) : } } & \\\hline \text { Shares outsta nding } 50 \text { million } & \text { Expected share price } & \\\hline\end{array}$$

• A)13.00
• B)16.00
• C)16.80
• D)17.50

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Definitions:

Team Functioning

The process by which a group of individuals works together effectively to achieve common goals.

Distributed Leadership

An organizational framework where leadership roles are shared among members of a group or organization, rather than centralized in a single individual.

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A leadership style that emphasizes transparency, integrity, and ethical behavior, promoting trust and authenticity.

Conjunctive Leadership

A leadership approach that emphasizes the collaboration and connection between leaders and team members, fostering unity and joint effort.