Question: 13. Using the zero growth formula for valuing a share of common stock, if the discount rate (required rate of return) increases , and all

13. Using the zero growth formula for valuing a share of common stock, if the discount rate (required rate of return) increases, and all the other input variables remain the same, the price of the stock will ______________.

Group of answer choices

a. increase

b. decrease

c. remain unchanged

d. cannot be determined

14. Which type of market efficiency is an "event study" designed to test?

Group of answer choices

a. Weak form efficiency.

b. Semi-strong form efficiency.

c. Strong form efficiency.

d. All of the above

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