Question: Problem 2 Suppose that Amazon stock closed yesterday at $115. However, new information suggested that the stock price will end the year at $140. If

 Problem 2 Suppose that Amazon stock closed yesterday at $115. However,

Problem 2 Suppose that Amazon stock closed yesterday at $115. However, new information suggested that the stock price will end the year at $140. If the annual required return on Amazon stock is 15%, what should be the opening price of the stock today? (Assume the stock paid $1 dividend). 1. Based on the efficient market hypothesis, what will happen 6 points to the price of Amazon stock the next day when the market opens? * O a. The price will decrease by $7.61 per share O b. The price will increase by $14.13 per share c. The price will decrease by $14.13 per share d. The price will increase by $7.61 per share e. None of the above

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