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question -Harry Potter Company takes the decision to reinvest 65% of its earnings in projects that provide an ROE of 12%, despite the fact that

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-Harry Potter Company takes the decision to reinvest 65% of its earnings in projects that provide an ROE of 12%, despite the fact that the firm's capitalisation rate is 16%. The firm's year- end dividend will be $1.75 per share. The PVGO is

a. $31.25

b. $9.91

c. $-9.91

d. $21.34

-If security markets are efficient, then

a. fundamental analysis is a waste of efforts

b. active portfolio management underperforms passive portfolio management

C. all of the answers are correct

d. technical analysis is useless

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