1. Next Tech Inc. is an information technology company that had $4.02 in earnings per share (EPS) this year. The average price-to-earnings (P/E) ratio of comparable information technology firms is 20.2. What should Next Tech Inc.'s share price be? Answer in dollars and round to the nearest cent. (Do not include the $ sign.)

2. Acme Products Corp., a chemicals firm, has $922 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), $180 million in debt, $32 in cash, and 128 million in outstanding shares. The average enterprise value to EBITDA (EV/EBITDA) ratio of firms in the chemicals industry is 8.0. What should a share of Acme Products Corp. be worth? Answer in dollars and round to the nearest cent. (Do not include the $ sign.)

3.

The efficient market hypothesis implies that

a. Stock prices aggregate the information of a few investors.

b. Competition between investors tends to eliminate positive-NPV trading opportunities.

c. Competition is strongest when information is private and hard to interpret.

d. Public information may provide large profit opportunities to investors because that information is readily available to all investors.

4. Financial bubbles occur because of all of the following except?

a. Excessive trading

b. Overconfidence

c. Hanging on to loser stocks

d. Conservative trading