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Papessa [141]
1 year 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]1 year 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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Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year ma
Nadya [2.5K]

Answer:

7.74%

Explanation:

The yield to call would be the internal rate of return considering the cahsflow until the bodn is called. W can solve for that using excel IRR function;

We list the cashflow in order.

F0 -1180

F1 105

F2 105

F3 105

F4 105

F5 1205 (105 coupon payment plus 1100 principal)

We now write the function and get the YTC

=IRR(B1:B6) 7.7366%

3 0
3 years ago
From the perspective of the parent corporation, contrast the tax consequences of a subsidiary liquidation under the general nonr
erik [133]

Answer:

Section 338 allows the corporation to purchase stock and retain the basis of assets. It also allows adjusting the basis for the assets. Under section 338 the, if the corporation sold its assets, the transactions related to sale will be subjected to double tax. Whereas, if the corporation cause liquidation for the target asset's and then undergo for a sale is subjected to single tax.  

6 0
3 years ago
_____ refers to the actions of consumers directly involved in obtaining, consuming, and disposing of products, and the decision
Rashid [163]

Answer:

Consumer behavior

Explanation:

It is the decision process in which consumers evaluate, select, acquire, use and dispose goods and services to satisfy their needs and wants. It covers what they buy, why, when, how, where and how often. Consumer behavior involves mental, emotional and physical activities.

3 0
3 years ago
Ramsey Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 60,000 subsc
Alexxandr [17]

Answer:

The correct answer is B

Explanation:

The journal entry to record the sale of the subscription is as:

Cash A/c.............................................................Dr       $600,000

   To Unearned Subscription Revenue A/c..........Cr      $600,000

As company made a sale of the subscription, so cash is received from sale therefore any increase in asset is debited. So, the cash account is debited. And the unearned subscription revenue is credited because cash is received against subscription sale.

8 0
3 years ago
Cereal is an example of a consumer product, where many ________ cost comprehensive prototypes are built since the product has __
Ilia_Sergeevich [38]

There are different types of prototype decisions. Cereal is an example of a consumer product, where many low cost comprehensive prototypes are built since the product has high market risk.

There are different kinds of Prototype Decision when looking at the technical risk compared to the prototype cost. They are:

  • Low risk - low cost (printed stuff) : Here, there is no need for comprehensive prototypes.

  • Low risk - high cost (ships, buildings) : Here, there is no way one can afford comprehensive prototype.

  • High risk - low cost (software) : Here, there a a lot of comprehensive prototypes.

  • High risk - high cost (airplanes, satellites) : This often make use of analytical models a lot, have a well throughout planned of comprehensive prototypes

Prototyping is simply known to be the estimation or approximation of the product with its one or more areas of interest.  It has 2 kinds which are Physical prototypes vs. analytical prototypes , Comprehensive (with all the attributes of a product) vs. focused.

Learn more about Prototyping from

brainly.com/question/7509258

4 0
2 years ago
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