ABC common stock is expected to have have dividends in year 1 of $3/share, year 2 of $3/share, year 3 of $3.2/share, year 4 of $3.4/share, and in year 5 of $3.6/share. Then dividends will grow at a constant rate of 6%. If the discount rate is 15%, what should be the current share price? Hint: The growing perpetuity (Gordon growth model) should be put into year 5 along with the year 5 dividend before taking the present values. O $31.16 O $31.80 O $37.42 O $47.77 QUESTION 12 XYZ common stack is expected to have have dividends in year 1 of $1/share, year 2 of $1/share, year 3 of $2/share, year 4 of $3/share, and in year 5 of $3/share. If the expected price of XYZ stock in year 5 is $15/share and the discount rate is 9%, what should be the current share price? $10.99 O $11.80 $16.42 $17.13 QUESTION 13 The idea that stack prices should reflect all available information and can thus not be predicted is known as o efficient markets O rigged markets o inefficient markets o none of the above QUESTION 14 The study of how humans make financial decisions that are predictable and not optimal for the own benefit is known as o efficient markets O rigged markets behavioral finance human finance