Which of the following statements is (are) TRUE? Select one or more alternatives: If uncovered interest rate parity holds, it would generally not be possible to profit from carry trades (taking a short position in one currency and a long position in another). 1 If covered interest rate parity holds, then uncovered interest rate parity must also hold. Studies suggest that uncovered interest rate parity does not hold in the short and medium term. We can predict what the spot exchange rate will be in one year from today based on today's one-year forward exchange rate. Complete all questions below relating to Tiffany Ltd, a listed company in the fashion industry. (a) An analyst has collected the following information and wants to estimate the value of Tiffany's shares using the dividend discount model: Tiffany currently pays no dividend. Tiffany is expected to pay an annual dividend of $6 per share two years from today. Tiffany's dividends are expected to grow by 4% per year indefinitely thereafter. The cost of equity is 9%. The cost of debt is 4%. The weighted average cost of capital is 7%. Using the dividend discount model and the information above, the per share value is $ Note: Please provide your answer with two decimal points in the format of xx.xx (for example, if the answer is $1.234, type in 1.23). (b) Suppose that the current market price of Tiffany's shares is $130 per share. Another analyst has used a discounted cash flow model to value Tiffany's shares at $118 per share. According to the analyst, Tiffany's shares are currently v Select alternativen the market. under-valued Reset fairly-valued Maximum marks: 6 over-valued