Question
2. Using the constant growth formula for valuing a share of common stock, if the growth rate increases , and all the other input variables
2. Using the constant growth formula for valuing a share of common stock, if the growth rate increases, and all the other input variables remain the same, the price of the stock will ______________.
Group of answer choices
a. increase
b. decrease
c. remain unchanged
d. cannot be determined
3. If I hear that a DELTA Airlines plane crashed on the radio, and I am able to sell my DELTA stock before the price falls, it would be a violation of ______________ market efficiency.
Group of answer choices
a. weak form
b. semi-strong form
c. strong form
d. ultimate form
4. The form of market efficiency that says that you cannot use inside information to gain abnormal returns is______________________.
Group of answer choices
a. weak form
b. semi-strong form
c. strong form
d. ultimate form
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