Question 1 (8 marks) Determine whether the following statements true or false. Briefly explain your answers. (Hint: State your conclusion and then briefly explain (in no more than a four lines).] (a) If a firm announces an unexpectedly large cash dividend, the EMH would predict a gradual price change to occur for several weeks after the announcement. (4 marks) (b) If the ROE of a company is higher than its discount rater, it would be in shareholders' interest to retain earnings in the company (4 marks)