Question: 2. Using the constant growth formula for valuing a share of common stock, if the growth rate increases , and all the other input variables

2. Using the constant growth formula for valuing a share of common stock, if the growth rate 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

3. If I hear that a DELTA Airlines plane crashed on the radio, and I am able to sell my DELTA stock before the price falls, it would be a violation of ______________ market efficiency.

Group of answer choices

a. weak form

b. semi-strong form

c. strong form

d. ultimate form

4. The form of market efficiency that says that you cannot use inside information to gain abnormal returns is______________________.

Group of answer choices

a. weak form

b. semi-strong form

c. strong form

d. ultimate form

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