The Gordon Growth Model is widely accepted in valuing growth stocks. We derive an alternative constant growth model from the present value of a perpetuity equation given an assumption that investors discount a firm’s future retained earnings independently from dividends. In a special case when...

This article tests market efficiency in the over-under betting market for Major League Baseball using data from the 1996 through 2000 seasons. It is shown that a simple betting strategy based on streaks was profitable for the 1997 season but was not profitable for any of the other years studied....