Leeds plc has a current share price of 7.35 and the dividends are expected to grow at a constant growth rate indefinitely. The cost of capital for Leeds plc is 7%. The expected share price in 4 years from now is 8.93. The management of the company is faced with an investment opportunity which will require dividends to be reduced to 8p per annum for the next five years. Dividends in six years will be 20p and they will then grow at 6% per annum. However, given the risk of the project the cost of capital will rise to 8% if the company goes ahead with the project. Farmer's Almanac ( 2 marks) An investor discovers that predictions about weather patterns published years in advance and found in the Farmer's Almanac are amazingly accurate. In fact, these predictions enable the investor to predict the health of the farm economy and therefore certain security prices. This finding is a violation of the: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a moderate form of the efficient market hypothesis. b weak form of the efficient market hypothesis. c strong form of the efficient market hypothesis. d semi-strong form of the efficient market hypothesis. e None of the above