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BUS-330 Business Finance

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1. Please explain how three forms of Effective Market Hypothesis (EMH) can be explained by this graph (the one on last slide of our CH7 PPT) respectively, and why?

807_Figure.jpg

2. The TNC News Co. paid the last dividend (D0) of $2/share, and the dividend is expected to grow at a rate of 20% over the next 3 years. It will then grow at a normal, constant rate of 4% for the future. The rate of return is 15%. What should the stock price be today?

Operation Management, Management Studies

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