Question: 1. Efficient markets tend to exist when there are enough rational arbitrage traders even if there are numerous irrational traders. True False 2. A stock

1. Efficient markets tend to exist when there are enough rational arbitrage traders even if there are numerous irrational traders.

True

False

2. A stock sells for $155.00 per share and has a required rate of return of 10%. Dividends are paid

annually and is expected to increase at a constant 5% per year. What is the amount of the last

dividend paid?

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