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Let suppose that a share of OGDCL had a closing price yesterday of $105, but new earning information was announced after the market closed that
Let suppose that a share of OGDCL had a closing price yesterday of $105, but new earning information was announced after the market closed that caused a revision in the forecast of the price for next year to go to $125. If the annual equilibrium return on OGDCL is 15%, what does the efficient market hypothesis indicate the price will go to today when the market opens. Solve for new price (Assume that OGDCL pays $15 dividend per share.)
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