In Testing the Hypotheses $H _ { 0 } : \mu =$

question 105

Short Answer

In testing the hypotheses: $H _ { 0 } : \mu =$ 35 H₁ : $\mu$ < 35,
The following information is known: n = 49, $\bar { x }$ = 37 and $\sigma$ = 16. The standardised test statistic equals: $\begin{array}{|l|l|}\hline \text { A. } & 0.33 . \\\hline \text { B. } & -0.33 \\\hline \text { C. } & -2.33 \\\hline \text { D. } & 2.33 . \\\hline\end{array}$

Understand the concept of the constant growth model in dividend paying stocks.

Analyze the impact of changing dividend policies on stock valuation.

Distinguish between different rates of return and their implications on stock prices.

Apply the concept of price today versus price in the future in stock valuation.