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Papessa [141]
2 years ago
10

Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon i

s?
Business
1 answer:
Nina [5.8K]2 years ago
3 0

Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is consistent with the efficient markets hypothesis if the earning were not as high as anticipated

The efficient market hypothesis states that neither technical nor fundamental analysis can generate excess returns because new information in the market is immediately reflected in stock prices.

The efficient market hypothesis is a hypothesis in financial economics that states that asset prices reflect all available information. A direct consequence of this is that it is impossible to "beat" the market consistently on a risk-adjusted basis, as market prices should only respond to new information.

Learn more about efficient markets hypothesis here: brainly.com/question/14311423

#SPJ4

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Six equal partners own a local pizzeria. The partners have made a tremendous profit and bought many personal items such as cars,
Tanya [424]

Answer:

Money to be paid by each partner individually is $112,500

Explanation:

Let A and B are partners of a share amount Z

If A's amount is x and share of B's amount is y, then share of A is calculated as

x / (x + y) * z

Number of partners in Pizzarie is 6 with all having equal shares

Value of business is $675,000

Damage to be paid is $1.2 million

Hence, the money to be paid by each partners individually is:

= $675,000 / 6

= $112,500

Therefore, money to be paid by each partner individually is $112,500

5 0
3 years ago
Suppose Compco Systems pays no dividends but spent $ 5.18 billion on share repurchases last year. If​ Compco's equity cost of ca
shusha [124]

Answer:

Market capitalization - $155.26

Stock price - $26.77

Explanation:

The computation of the market capitalization is shown below:

= last year dividend × (1 + growth rate) ÷  (cost of capital - growth rate)

= $5.18 billion × ( 1 + 7.9%) ÷ (11.5% - 7.9%)

= $5.58,922 billion ÷ 3.6%

= $155.26

And, the stock price would be

= Market capitalization ÷ outstanding shares

= $155.26 ÷ 5.8 billion

= $26.77

3 0
3 years ago
From the McDonalds web "There is increasing concern about obesity rates and related risks to well-being among consumers, governm
Sidana [21]

Answer:

Social responsibility

Explanation:

Social responsibility is the way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.

6 0
4 years ago
Rocky Mountain Corporation makes two types of hiking boots?Xactive and Pathbreaker. Data concerning these two product lines appe
riadik2000 [5.3K]

Answer:

1a. Predetermined overheard rate is $20.8

1b. Product cost for each product:

                                                       Xactive ($)                       Pathbreaker  ($)      

                                                        <u> 113.72                              86.4</u>

Explanation:

1(a)

Predetermined overheard rate is calculated with formula:

<u>Budgeted Cost</u>

Activity Level

For Rocky Mountain:

=   <u>$2,687,360</u>

       129,200

= $20.8

1 (b) Product cost involves the total cost incurred directly as a result of making a product. Product cost is calculated by adding direct material cost, direct labour cost and manufacturing overheard together.

Product cost

                                                                  Xactive                        Pathbreaker

Direct material                                         65.60                              51.80

Direct labour cost                                    19.00                              13.80

Manufacturing overheard($20.8)           <u>29.12                               20.8</u>

                                                                 <u>113.72                              86.4</u>

<u />

5 0
4 years ago
Ides receives 16 cents for every unit produced. Ides produces 2,976 pieces in a 43-hour workweek. For overtime, Ides is paid a s
mash [69]

Answer:

$492.78

Explanation:

Calculation for What The Ides' total piecework and overtime earnings are

Ides' total piecework and overtime earnings=[(2,976 × $0.16 ÷43*(0.5)]*3+[(2,976 × $0.16 )]

Ides' total piecework and overtime earnings= [($476.16 ÷ 43)*0.5]*3+[(2,976 × $0.16 )]

Ides' total piecework and overtime earning = ($11.07 × 0.5 )*3+[(2,976 × $0.16 )]

Ides' total piecework and overtime earnings= ($5.54 × 3)+$476.16

Ides' total piecework and overtime earnings = $16.62 + $476.16

Ides' total piecework and overtime earnings=$492.78

Therefore the Ides' total piecework and overtime earnings are $492.78

4 0
3 years ago
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