Business Finance Class
BUS-330 Business Finance Wk 4 discussion post
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?
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?