Answer:
The rate of growth of their dividend is 6.30%.
Explanation:
This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.
MV = D(1+G%)/ke
39.86 = 1.2 (1+G%)/(9.5%-G%)
G = 6.30%
Answer:
D) Stock prices of companies that announce increased earning in January tend to outperform the market in February.
Explanation:
The above is consistent with the Efficient Market Hypothesis. All others are a direct contravention.
<em>The efficient market hypothesis (EMH), also known as the efficient market theory, is a hypothesis that states that the prices of shares contain all information and that consistent alpha generation is impossible.</em>
According to the hypothesis, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.
This means that it should not be possible to outperform the overall market through professional stock selection or market timing.
The only way according to EMH that an investor can obtain better returns is by purchasing riskier investments.
By implication, this also means that it is not possible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.
You would note that in the option D, earning (which is a key driver for demand of stock) is announced in one month. The natural reaction would be for the demand for that stock to surge in the next month.
<span>Working for a mental health agency, it is next to impossible to access information. Our agency is required by law to maintain all client records for 7 years in a secured area (limited access by Executive Director & Director of Operations, No access by employees). After 7 years they are to be disposed of properly. Our agency shreds our documents personally as to not allow a private company to do so, hence there is no breach of confidentiality. Then a private company (document disposal company) removes the shredded documentation for destruction. So it would be impossible (or at least, improbable) to obtain access to our organization information through dumpster diving.</span>
Answer:
This type of argument ties to make a connection between people living in different parts of the world using both geographic and demographic variables. The geographic variables are the foreign cities (London, Sao Paulo, and Tokyo) and the demographic variables would be the education and income levels (wealthy MBAs).
Answer: 4,375 units
Explanation:
The budgeted production for July will be;
= July sales + Ending inventory - Beginning inventory
Ending inventory = 25% * August sales =25% * 4,900 = 1,225
Budgeted production = 4,200 + 1,225 - 1050 = 4,375 units
