Response to the following problem:
Define each of the following terms:
a. Proxy; proxy fight; takeover; preemptive right; classified stock; founders' shares
b. Closely held stock; publicly owned stock
c. Secondary market; primary market; going public; initial public offering (IPO)
d. Intrinsic value (Pˆ0); market price (P0)
e. Required rate of return, rs; expected rate of return, ˆrs; actual, or realized, rate of return, r s
f. Capital gains yield; dividend yield; expected total return
g. Normal, or constant, growth; supernormal, or nonconstant, growth; zero growth stock
h. Equilibrium; Efficient Markets Hypothesis (EMH); three forms of EMH.