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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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