Please first gather all the raw information and build a deterministic model in Excel, Then define the distribution assumptions and output accordingly.

9. IPO Valuation. A small, private company is contemplating an initial public offering (IPO) in which they will sell 40,000 shares of stock. The price of the stock at the IPO is uncertain, with the following distribution: Price Probability 10 0.10 0.20 0.30 0.20 0.10 0.10 12 13 15 In each of the next five vears there is a 30 percent chance the company will fail. If it does not fail, its stock value will increase by an amount given by a lognormal distribution with a mean of 1.5 percent and a standard deviation of 0.5 percent. a. What is the mean value of the stock at the end of five vears assuming the company does not fail in the interim? b. What is the probability the company will still be in existence after 5 years? 9. IPO Valuation. A small, private company is contemplating an initial public offering (IPO) in which they will sell 40,000 shares of stock. The price of the stock at the IPO is uncertain, with the following distribution: Price Probability 10 0.10 0.20 0.30 0.20 0.10 0.10 12 13 15 In each of the next five vears there is a 30 percent chance the company will fail. If it does not fail, its stock value will increase by an amount given by a lognormal distribution with a mean of 1.5 percent and a standard deviation of 0.5 percent. a. What is the mean value of the stock at the end of five vears assuming the company does not fail in the interim? b. What is the probability the company will still be in existence after 5 years