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:

Aftercare

Support or care provided after the initial treatment of an illness or discharge from a facility, aiming to assist in recovery or manage symptoms.

Community Mental Health Act

A significant law passed in the United States in 1963, aimed at providing federal funding for the development of community-based mental health care facilities.

Without Leaving

Pertaining to an action or result that is achieved without the need to physically depart from a current location.

Inpatient Treatment

A form of medical or psychiatric treatment where the patient stays in a hospital or clinic overnight or for an extended period of time for intensive care.