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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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It’s: c) heading! hope this helps
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Strickland Company sells inventory to its parent, Carter Company, at a profit during 2012. One-third of the inventory is sold by
Rudik [331]

Answer:<u><em> Cost of goods sold</em></u> would be a debit entry to eliminate the intra-entity transfer of inventory.

Cost of goods sold is known as the direct costs ascribable to the production of the commodity sold in a organization. This considers the cost of the materials that has been substantially used in making the commodity including the labor costs.

<u><em>Therefore, the correct option is (b)</em></u>

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3 years ago
2. X Company has the following accounting balances at the end of the year before adjustments: Accounts receivable $ 50,000 Allow
elixir [45]

Answer:Bad debt expenses will be $2000 on the income statement and Allowance for uncollectible Accounts will be ($3000) on the balance sheet.

Explanation:

The bad debt accounts and allowance for uncollectible accounts are stated in the income and balance sheet statement respectively yearly to monitor activities on collectible debts.

A firm based on his experience determined an estimated percentage of debts outstanding for the year that are likely to go bad. If the new estimate is greater than the previous year, the difference is debited to income statement and if the new estimate is less than the previous year estimate the difference is credited to the income statement.

In the above scenario the new year estimate is greater than previous year by $ 2000 and that lead to $2000 to be debited to income statement.

The balance is made to reflect the total of the new estimate to be deducted from collectible debt and this is why ($3000) goes to the balance sheet.

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Who is better off: a person using credit cards or a person refraining from any loans?
PIT_PIT [208]
<span>Who is better off: a person using credit cards or a person refraining from any loans? A person using credit cards is better off </span>from a person refraining from any loans. A person using credit can often purchase more and have more flexibility with their money over someone who only uses cash. There are items and services that do not take cash as a form of payment, so without a credit card the person can not make the purchase. 
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4 years ago
Which of the following items is a major principle pertaining to selection under the Americans with Disabilities Act?
Slav-nsk [51]

Answer:

A) It is unlawful to use criteria that will screen out individuals with disabilities unless the criteria are consistent with a business necessity.

Explanation:

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It states that it is illegal to use the criteria which will screen out the individuals with any disabilities except the criteria are consistent with business necessity.

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