About the market efficiency

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1. Market efficiency:

A. or the lack thereof, is highly controversial.

B. has been proven to exist only during times when earnings surprises are minimal.

C. has been proven to be strong form efficient for all publicly traded markets.

D. advocates that market prices are correct with both perfect foresight and hindsight.

E. as a hypothesis has been disproven in its entirety.

2. Miller Brothers Hardware paid an annual dividend of $1.75 per share last month. Today, the company announced that future dividends will be increasing by 3.00 percent annually. If you require a 8.5 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

$34.52

$32.77

$31.02

$58.33

$60.08

Reference no: EM132046090

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