1. If you believe in the ____ form of EMH you believe that stock prices reflect all relevant information including historical stock prices and current public information about the firm but not information that is available only to insiders.
2. Knique Shoes issued a $100,000, 8-month, “noninterest-bearing note.” The loan was made by Second Commercial Bank whose stated “discount rate” is 9%. The effective interest rate on this loan is:
3. A firm has $8 million in total assets. It has $3 million in current liabilities, $2 million in long-term debt, and $1 million in preferred stock. What is the total value of common equity.