List the three forms of the Efficient Market Hypothesis and briefly describe each form.
Assume you are using the dividend discount model to value a share of stock. Holding dividends constant, what other variables can change the value of the stock? Describe what happens to the value of the stock as each variable increases and decreases.
Assume Stark Industries will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.3% per year until the 5th year.? Thereafter, growth will level off at 2.1% per year. According to the? dividend-discount model, what is the value of a share of Stark stock if the? firm's equity cost of capital is 8.5%??
Assume Coleco pays an annual dividend of $1.47 and has a share price of $37.28. It announces that its annual dividend will increase to $1.78. If its dividend yield stays the? same, what should be its new share? price?