The income statement of Bulldogs Inc. in 2022 reflects a net Income of P2,050,000. The dividend policy of the company is to pay an annual cash dividend of P2 per share to common stock regardless of the market price of the share. If the dividend yield determined for the last day of 2022 is 20%, how much is the fair value of the share? (per share)

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.