This document of FIN 534 Week 4 Chapter 7 Solution shows the solutions to the following points:

1. Which of the following statements is CORRECT?2. Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT?3. Which of the following statements is CORRECT?4. Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company