Question 3 1 pts Currently, inventors in the stock market expect the price of the XYZ corporation's stock next year to b
Posted: Sun Jun 05, 2022 11:19 am
Question 3 1 pts Currently, inventors in the stock market expect the price of the XYZ corporation's stock next year to be $115. They also expect the corporation to pay $5 of dividend next year. Currently the price of stock is $100. The investors hear some good news about the corporation. As a result, they now expect the price of the stock next year to be $130 and for the corporation to pay a dividend of $8. According to the efficient markets hypothesis, the price of the stock today will jump to dollars.