4. (a) Discuss how the price of share/stock in a publicly traded company is determined, in theory. Explain how data from the firm's accounts are combined with market variables, in this process. 7p (b) Sometimes newly founded firms enter the stock market, with very little history of sales, costs and profits, but still are traded at high prices. Furthermore, often they do not pay any dividends and the recorded profits are negative. Discuss how a price/value of the firm's shares are determined in this case. 7p (c) Explain why share-holders in high-growth firms are happy (or at least not very disappointed) if they do not receive any dividends for the current year. Explain why it may not be in their interest to receive any dividends in certain situations. 6p