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Butoxors [25]
3 years ago
13

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

, the price of a security—such as a share of a particular corporation’s common stock—should be____the present value estimate of the firm’s expected cash flows discounted by its appropriate rate of return (also called the intrinsic value of the stock).
Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) becomes available. Financial theorists have identified three levels of informational efficiency that reflect what information is incorporated in stock prices.
Consider the following statement, and identify the form of capital market efficiency under the efficient market hypothesis based on this statement.
Current market prices reflect all relevant publicly available information.
This statement is consistent with:_____.
A. Strong-form efficiency.
B. Weak-form efficiency.
C. Semistrong form efficiency.
Consider that there is a semistrong-form of efficiency in the markets.
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever The consensus analyst forecast for the company's earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00. What will happen when the company releases its next earnings report?
A. There will be some volatility in the stock price when the earnings report is released: it is difficult to determine the impact on the stock price.
B. The stock price will not change, because the market already incorporated that information in the stock price when the announcement was made.
C. The stock price will increase and settle at a new equilibrium level.
Business
1 answer:
Phantasy [73]3 years ago
8 0

Answer:

sry I don't know the answer

sry

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Marina86 [1]

The department that is being described above is the agricultural department as they are the ones responsible of providing agricultural related resources, such as food, animals, and natural resources. It could be seen above as the department provides food for the families in which are in their role of providing for they are the ones responsible in food technology.

6 0
3 years ago
Managers at Flavors, a restaurant chain, train their employees such that in the absence of employees, someone trained in the sam
harkovskaia [24]

Answer: Job Rotation

Explanation:

Job rotation is referred to as a technique or method that used is by employers in order to rotate jobs assigned to their employees'. Employers tend to practice this method or technique for several no. of reasons. This was designed in order to promote the flexibility of the employees and thus keeping their employees interested in being employed with this organization.

3 0
3 years ago
Decision Point: Pricing Your Bookshelf Your next task is to provide a pricing recommendation for the bookshelf system. The produ
stiks02 [169]

Answer:

Selling price= $150

Explanation:

Giving the following information:

The expected sales are 2,500 units. Production informs you that the variable costs are $50/unit. Fixed costs are $150,000.

We need to use the break-even point formula and isolate the selling price:

Break-even point= fixed costs/ contribution margin

Break-even point= fixed costs/ (selling price - unitary variable costs)

2,500= 150,000 / (X - 50)

2,500X - 125,000= 150,000

2,500X= 375,000

Selling price= $150

8 0
4 years ago
How much does it cost to ship furniture to the philippines answers?
Svetlanka [38]
It's all depends on from where you are shipping the furniture from
3 0
4 years ago
You work as a tutor for ECON 102. You sell your services at $20/hr., and you can only tutor one person at a time. Suppose you cu
zlopas [31]

Answer:

a. We need more information to answer

Explanation:

In order to correctly answer his question we need more information. Economy is all about the margin, i.e. marginal revenue versus marginal cost. We are given the marginal revenue ($20/hr of tutoring services) but we are not given the marginal costs of tutoring. We only know that the cost of tutoring the first hour is $14, but what about the rest of the hours. Since you have 5 clients, you must be tutoring more than 1 hour per day. It is always easier to determine the marginal revenue since we determine it, while we cannot determine which costs we would like to incur.

Profits should be maximized when marginal revenue = marginal cost, but unless we know the marginal cost of tutoring the rest of the students we simply cannot answer this question.

5 0
3 years ago
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