The present value of a 3-year $100 annuity due is equal to the present value of a 3-year $100 annuity

• Times by (1+i)^N

• Times by (1+i)

• Divided by (1+i)^N

• Divided by (1+i)

Which of the following statements is incorrect if the stockmarket is efficient

• Securities are normally in equilibrium and are fairly priced

• Small companies Followed by few analysts are relatively more efficient than large companies followed by many analysts

• investors cannot beat the market except through good luck or better information

• information is reflected very quickly in the stock price

Another type of agency relationship in a corporation is between the stockholder and the bond holder. Who is the agent in this agency relationship?