If a company is expected to earn $1 per share this year and 2% more per share each subsequent year, the stock price in an efficient market will reflect
A) the $1 per share, but ignore the 2% annual growth.
B) neither of these pieces of information.
C) the 2% annual growth but not the starting point of $1 per share.
D) both of these pieces of information.
Correct Answer:
Verified
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