Suppose that LPTV stock closed yesterday at $220. However, new information suggested that the stock...
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Suppose that LPTV stock closed yesterday at $220. However, new information suggested that the stock price will end the year at $185. If the annual required return on LPTV stock is 11%, what should be the opening price of the stock today? (Assume the stock paid $1.2 dividend).
1. Based on the efficient market hypothesis, what will happen to the price of Nikes stock the next day when the market opens? *
a. The price will decrease by $52.25 per share
b. The price will increase by $20.72 per share
c. The price will decrease by $20.72 per share
d. The price will increase by $52.25 per share
e. None of the above
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