1. An office building offering a total of 27,000 square feet of rentable space is currently 70% occupied. If utilities are $2.00/sf and 25% fixed, what is the estimated cost of utilities for this property?
2. "In a truly efficient market, stock prices would react immediately and sharply to new information, settling into a new equilibrium price." Please explain.
3. Osborn Corporation currently does not pay any dividend. Analysts expect that the company will pay its first dividend of $5 per share at the end of year 4. After that, the company will continue to pay this dividend at the end of each year for foreseeable future. What is the value of the stock today if the required rate of return is 10%?