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
pishuonlain [190]
3 years ago
11

Deviations from informational efficiency would result in a large cost that will be borne by all participants, namely inefficient

resource allocation. Corporations with overpriced securities, for example, would be able to obtain capital too expensively while undervalued companies might forgo investment opportunities because the cost of raising capital would be too low.
a. True
b. False
Business
1 answer:
Masteriza [31]3 years ago
6 0

Answer: False

Explanation:

Deviations from informational efficiency does in fact result in a large cost for all participants however the effects given in the question are false.

If there is a deviation from informational efficiency, overpriced companies would be viewed as performing well enough to get capital at a cheaper rate because they would be viewed as less of a risk.

Undervalued companies would get capital at a higher cost because they would be viewed as less likely to pay back the capital when in fact they are not valued at their proper value which would have shown that they would be able to pay off the capital acquired.

You might be interested in
Forrest Company manufactures phone chargers and has a JIT policy that ending inventory should equal 20% of the next month’s esti
UNO [17]

Answer:

Total= 446,000 units

Explanation:

Giving the following information:

The inventory should equal 20% of the next month’s estimated unit sales. It estimates that October’s actual ending inventory will consist of 92,000 units. November and December sales are estimated to be 460,000 and 390,000 units, respectively.

Production:

Sales= 460,000

Ending inventory= (390,000*0.2)= 78,000

Beginning inventory= (92,000)

Total= 446,000 units

6 0
4 years ago
The Sugar Cookie Company just paid its annual dividend of $.45 a share. The stock has a market price of $21 and a beta of.88. Th
Juliette [100K]

Answer:

The cost of equity based on the CAPM is 10.888%

Explanation:

The cost of equity of the stock or the required rate of return (r) is the minimum return required by investors to invest in a stock. The CAPM approach provides an equation to calculate the required rate of return (r) based on the risk free rate, stock's beta and the market risk premium. The formula for r is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate or rate on T bills
  • rM is the expected return on market

r = 0.042 + 0.88 * (0.118 - 0.042)

r = 0.10888 or 10.888%

8 0
3 years ago
Read 2 more answers
Susan's job involves recruiting eligible people for a business. It's her responsibility to identify the task requirements and th
notsponge [240]

Answer:

Staffing

Explanation:

STAFFING is the process of hiring a person or an individual that is qualified into an organization in order to fill into a particular job position by identifying the task requirements of the vacant position, assessing the candidate skills as well as the candidate knowledge and ability inorder to be sure if the candidate will fit in well into that particular position they are about to be employed for, which is why STAFFING is Paramount when selecting an employee for a particular job position because it help to employ candidate that are qualified into the organization or company.

Therefore based on the information given the management function Susan was performing is called STAFFING.

7 0
3 years ago
Read 2 more answers
Which one of the following statements is​ false? A. The activities along the critical path determine the completion time of the
ra1l [238]

Answer:

C.

Explanation:

The critical path is the sequence of activities between a​ project's start and finish that takes the shortest time to complete.

8 0
3 years ago
Fields Company purchased equipment on January 1 for $180,000. This system has a useful life of 8 years and a salvage value of $2
bonufazy [111]

Answer:

B. $24,000.

Explanation:

The computation of the depreciation per units under the units-of-production method is shown below:

= (Original cost - residual value) ÷ (estimated production units)

= ($180,000 - $20,000) ÷ (40,000 units)

= ($160,000) ÷ (40,000 units)

= $4 per unit

Now for the second year, it would be

= Production units in second year × depreciation per unit

= 6,000 units × $4

= $24,000

3 0
4 years ago
Other questions:
  • Nathan wants a formula to return "YES" if the value in cell A1 is less than the value in cell B1, and to return "No" otherwise.
    11·1 answer
  • What is the text that is entered into a cell used to identify the purpose of the worksheet, columns, and rows
    11·2 answers
  • Matt wants to buy his first car, but he does not know much about cars. his friends sandy and sam are automobile enthusiasts and
    10·1 answer
  • Restaurant pagers reduce wait time for customers, true or false?
    7·1 answer
  • DeShon has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast hi
    9·1 answer
  • Someone talC to me and lets do school dont ban me
    5·1 answer
  • Sensitivity analysis in the calculation of the adjusted present value (APV) allows the financial manager to Multiple Choice cons
    15·1 answer
  • Good relationship selling increases
    6·1 answer
  • Which phrase best describes economic specialization?
    10·1 answer
  • Why would researching the average earnings by major and by career be
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!