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kolezko [41]
3 years ago
11

Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed t

he required return. What happens to the market value
Business
1 answer:
nadya68 [22]3 years ago
7 0

Answer:

The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.

Explanation:

  • Thus, in the equilibrium,  of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price.  
  • The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.

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In a leveraged buyout, the managers of a firm, its employees, or other investors: obtain the assets of the company through bankr
erik [133]

Answer:

borrow funds to buy out the firm's stockholders. 

Explanation:

A leveraged buyout is when the managers of a firm, its employees, or other investors use debts or borrowed finds to acquire a company.

I hope my answer helps you

4 0
3 years ago
quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $52,
trapecia [35]

Answer:

The total cost of quality is $ 313200

Explanation:

First we need to distinguish the costs and allocate them to the correct category for the cost of quality report.

We have verifying credit card information of $52200

Customer service training of $104400

Discounting room rates due to poor service $ 156600

The 4 categories of cost of quality report are Prevention Costs, Appraisal Costs, Internal Failure costs and external failure costs.

Conforming Costs

Customer service training - prevention costs. - $104400       1,53% of total sales

Verifying credit card information - appraisal cost - $52200   0,76% of total

Non-conforming costs

Internal Failure

External Failure costs

Discounting room rates due to poor service $ 156600          2,3% of total sales

Total cost of quality                                          $ 313200         4,6%  of total sales

5 0
3 years ago
What is one cost of avoiding insurance?
Illusion [34]

Answer:

falling into debt if faced with a serious problem

Brainliest?

8 0
3 years ago
Read 2 more answers
In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (a
nata0808 [166]

Answer:

The bond will sell for the amount of $869.17

Explanation:

According to the given data coupon amount = 50/2 = 25

Therefore, in order to calculate the selling price of the bond we would have to make the following calculation:

selling price of the bond = 25 * PVIFA(3%,52) + 1,000 * PVIF(3%,52)

selling price of the bond= 25 * 26.1662 + 1,000 * 0.2150

 selling price of the bond= $869.17

The bond will sell for the amount of $869.17

6 0
3 years ago
In a market economy, a high price will usually cause
Talja [164]

Answer:

C) producers to supply more and consumers to buy less.

Explanation:

The typical supply curve is upward-sloping (higher price leads to higer quantity supplied) and the typical demand curve is downward sloping (higher price lower quantity demanded).

Price is a measure of how much one good can be exchanged for other things. Production incurred cost (tend to rise as more resources become harder to obtain) so to supply more suppliers will demand higher price. Purchasing higher price good means consumers have less money (less of other goods can be bought) consumer will buy less good at higher price.

6 0
3 years ago
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