2. A. Under some assumptions the fundamental value of a firm may be expressed as P.-(1-k)y, +k(@x - d.) Where P, y, x and d denote Price, book value, income and dividends respectively, t is the time subscript, and is the ratio of (1+)/, r being the cost of capital. Does this formula lead to arbitrage free pricing? Why or why not? (3 points) 2. A. Under some assumptions the fundamental value of a firm may be expressed as P.-(1-k)y, +k(@x - d.) Where P, y, x and d denote Price, book value, income and dividends respectively, t is the time subscript, and is the ratio of (1+)/, r being the cost of capital. Does this formula lead to arbitrage free pricing? Why or why not? (3 points)