1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LenaWriter [7]
3 years ago
10

Assume that a company announces an unexpectedly large cash dividend to its shareholders. In an efficient market without informat

ion leakage, one might expect:
a) An abnormal price change at the announcement.
b) An abnormal price increase before the announcement.
c) An abnormal price decrease after the announcement.
d) No abnormal price change before or after the announcement.
Business
1 answer:
HACTEHA [7]3 years ago
5 0

Answer:

The correct option is A, abnormal price change at the announcement

Explanation:

Abnormal price increase before the announcement would only  be the case if the there was insider dealing, that is there exists information leakage.

An abnormal price decrease cannot be the case, the market prices a share based on its earnings' strength, in other words a stock with high dividends prospect is priced high.

Option D is wrong there would a price change stemming from the announcement made about large cash dividends payout

You might be interested in
The Anti-Federalists wanted to
Setler [38]
They wanted to ensure that the bill of rights was included in the constitution.
8 0
3 years ago
Read 2 more answers
Use the adjusted trial balance for Stockton Company to answer the question that follows.
Reil [10]

Answer:

c. $22,058.

Explanation:

7 0
2 years ago
Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a
Naddika [18.5K]

<span>The company failed to identify the issue because of their recklessness in partner event that they had been in. It means that their company had failed to get through their target market, and they did not identify their target market clearly. Alcoholic beverage was not a proper way to support the children with disabilities because the people who came probably just drank a lot.</span>

4 0
3 years ago
Taxes represent __________ of the business. Multiple Choice an equity liability a cash inflow a cash outflow an accounts receiva
Eduardwww [97]

The taxes that are being paid by a business firm represents: C. a cash outflow.

Taxation can be defined as the involuntary and compulsory fees that are usually levied on individuals or business firms (entities) by the government, so as to generate revenues which are used in funding public institutions and activities.

Basically, these taxes that are being paid by individuals or business firms (entities) is considered as a cash outflow because it represents money that are flowing out of their accounts.

In conclusion, an amount of money that is flowing out of an account such as taxes is referred to as a cash outflow.

Read more: brainly.com/question/16477816

5 0
2 years ago
If during 2009, the country of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion,
Maslowich

Answer:

36 billion

Explanation:

The GDP can be calculated using the income approach in which the output of a country is equal to the total income people receive in that country.

GDP= Compensation of employees + Net interest + Rental income + Corporate profits

From this formula, you can isolate the compensation of employees:

Compensation of employees= GDP-Net interest - Rental income - Corporate profits

Compensation of employees= $65-$15-$7-$7

Compensation of employees= $65-$29

Compensation of employees= $36

The wages during 2009 in Sildavida were: $36 billion.

8 0
3 years ago
Other questions:
  • The Atlantic Division of Stark Productions Company reported the following results for 2016:
    15·1 answer
  • To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 860,000
    12·1 answer
  • Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United
    9·1 answer
  • The hr manager told jim that the company pays the total health insurance costs for a family of four. as a single man, this benef
    10·1 answer
  • Lesley has a gift card worth $500 for a local entertainment store. movies cost $20 each and newly released video games cost $50
    11·2 answers
  • Standlar Company makes wireless speakers. The standard model price is $360 and variable expenses are $210. The deluxe model pric
    7·1 answer
  • A major goal of integrated marketing communications is to send a consistent message to _____.
    6·1 answer
  • Warren Enterprises had the following events during Year 1 The business issued $34,000 of common stock to its stockholders The bu
    10·1 answer
  • David Nason purchased a recreational vehicle for $25,000. David went to City Bank to finance the purchase. The bank required tha
    8·1 answer
  • Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns inve
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!