When using the Gordon Growth Model, we assume that a. Dividend growth rate changes over time b. Discount rate increases constantly over time c. Dividends grow constantly over time d. Discount rate is volatile QUESTION 11 What does the Efficient Market Hypothesis state? a. You buy in when small investors sell out their stocks because small investors are usually wrong. b. You can profit from investing if there is a greater fool than yourself to buy the investment at a higher price. c. People are more afraid of a loss than they are encouraged by a gain. d. Stock prices reflect all information, and the stock price is roughly equivalent to its fundamental value. QUESTION 12 What is the order of who gets paid first during a corporate liquidation? a. Preferred stockholders, bondholders, common stockholders b. Bondholders, common stockholders, preferred stockholders c. Common stockholders, preferred stockholders, bondholders d Bondholders, preferred stockholders, common stockholders