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What is efficient market hypothesis? Give its 3 forms. (5 marks) FNBB holds common stock and paid their annual dividend on the last day of

What is efficient market hypothesis? Give its 3 forms. (5 marks)

FNBB holds common stock and paid their annual dividend on the last day of December 2020.They are expected to pay another dividend at the end of the year of P2.25. The dividends are projected to grow at 3 % per annum into perpetuity. Similar banking sector shares earn an effective annual return of 15%. Calculate the value of an FNNB share. (5 marks)

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