A company recently announced that it would be going public. The usual suspects, JPMorgan Chase, Morgan Stanley, and Goldman Sachs, will be the lead underwriters. The value of the company has been estimated to range from a low of $5 billion to a high of $100 billion, with $45 billion being the most likely value. If there is a 30% chance that the price will be at the low end, a 10% chance that it will be at the high end, and a 60% chance that the price will be in the middle, what value should the owner expect the company to price at?
49.5
66.0
None of the stated answers are correct.
48.0
38.5