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Q3.a. How is insider trading related to the strong-form Efficient Market Hypothesis? (12p) Q3b. What are the main stock and firm valuation methods and is

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Q3.a. How is insider trading related to the strong-form Efficient Market Hypothesis? (12p) Q3b. What are the main stock and firm valuation methods and is there a relationship between the stock price and the firm value? explain briefly (13p) Q4. The dividend on AB Corporation's stock will be $3 in year 1, S4 in years2, and S5 in year 3. You can sell the stockfor $95 after you receive all the dividend at the end of year 3. If you require a 10% return on your investment, how much would you be willing to pay for the stock today? (25p)

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