Under the Efficient Markets Hypothesis,what Would Be the Price Per

question 113

Multiple Choice

Under the efficient markets hypothesis,what would be the price per share of a company whose current dividend is $10.00 and whose dividends are expected to grow by 3% per year (assume the risk-adjusted interest rate is 10%) ?

• A) $74.62
• B) $79.23
• C) $142.86
• D) $147.14

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Definitions:

Greatest Good

A principle often associated with utilitarianism, focusing on actions that aim to maximize happiness or benefit for the greatest number of people.

Terminal Values

Deeply held beliefs or goals that individuals consider as their ultimate life objectives.

Instrumental Values

These are values that are seen as a means to an end, guiding individuals on how to reach their goals or desired outcomes.

Ethical Problems

Challenges or dilemmas that arise when determining the right course of action in situations involving moral values and principles.