Exploiting the opportunity-market inefficiency
Problem: If a stock is incorrectly priced by $0.05 and it costs $0.25 to exploit the opportunity, is the market inefficient?
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FastGrow is a no growth firm and has 2 million shares outstanding. It is expected to earn a constant $20 million per year. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stoc
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XYZ Inc.'s stock has a 50% chance of producing a 30% return, a 25% chance of producing a 9% return, and a 25% chance of producing a -25% return. What is XYZ's expected return?
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How do you usually help parents shift their perspective when they expect more academic style activities at this age?
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