8. The following question is about how to react to news in a semi-strong efficient market 1. Company will pay one terminal dividend at end of business then year, go out of 2. Based on all public info, investors know the distribution of the terminal dividend, 3. Investors rationally use the CAPM to discount. The dividend is yet unknown but based on a thorough analysis of all public information, investors agree on the following distribution: Terminal dividend $10 $6 $3 Probability .3 .5 .2 Also, all investors use the CAPM to discount risky cash flows. Based on all public information, it riskless rate 2.0%. If the market for this stock is semi-strong efficient, what is the current price? believed that Beta = 1.3, risk premium 7.5%, Now, one day later the company publicly announces that the terminal dividend will be $10, with absolute certainty. In a semi-strong efficient market, what does the price change to