In a strong-form efficient market, accounting announcements: will impact stock price only if it is related to cash flows will impact stock price if it involves new public information will imoact stock brice if it it affects a firms ability to borrow funds will no impact stock price

Q: Why do DCMs use dividends and not earnings in their formulas? a. Because earnings are not equal to…

A: DCMs seek to evaluate the fair value of a company regardless of current market conditions, taking…

Q: All of the following are risks associated with buying stocks, except -- loss of interest payments if…

A: Stocks are based on market demand and supply and it is very volatile and risky.

Q: what is meant by “The money market is necessary but not sufficient for the liquidity of securities…

A: Solution- The money market is an organized exchange market where participants can lend and borrow…

Q: Under FASB 52, the temporal method requires that: A. translation gains and losses are included in…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following statements is incorrect?      A. Dividend payments can be influenced by cash…

A: Dividends are the amount of profits distributed to the shareholders of the company.

Q: An _________________ is a person who performs an independent assessment of the fairness of a firm’s…

A: Since you are asked multi question we will provide the answer for one question only.  If you want…

Q: 1) Finance manager creates problems in decision-making process where money is involved. True False

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Fast solution provide

A: Let's understand each of these formulas:1. Equity Value - Net Financial Debt = Enterprise Value:…

Q: 1. What is the differences between restricted and unrestricted investment account?   (A) Right to…

A: Islamic  Accounting Islamic accounting can be defined as the process of accounting based on  Islamic…

Q: he residual theory of dividends argues that dividends a. can only be distributed if there is income…

A: Solution:- Residual theory of dividends means the dividend is the residue left after meeting the…

Q: Which of the following item is typically not included in a Public Information Book (PIB)?…

A: A public information book (PIB) is a document which has all the essential public information about…

Q: Firms are required to recognize changes in the value of short-term marketable equity investments…

A: Short-term marketable equity investments are the financial assets that a company holds with the…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: hich of the following is correct?   Transactions within the spot market can be used to mitigate and…

A: Hedging can be done by using forward and future and option market and can be used to mitigate spot…

Q: The company tend to raise financial capital through selling stocks in the secondary markets. Select…

A: There are two market one is primary market and other is secondary market.

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market is an organized market which meets short term requirements of the borrowers and…

Q: 4.The biggest advantage of common stockholders is that they have ___ which is not available in most…

A: Disclaimer: "Since you have posted multiple questions, we will solve the first question for you. If…

Q: 1.Financial distress is least apt to lead to A. Increase dividends B.financial restructuring…

A: Financial distress may result in asset restructuring, stock issuance, liquidation, and financial…

Q: Which of the following statements is FALSE? O A. Public companies typically have access to much…

A: Public companies have large capital raised through public markets, hence statement (A) is true.

Q: Which of the following dividends does not reduce total stockholders' equity? O Liquidating…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: explain the statement"The money market is neccessary but not sufficinet for the liduiidity of…

A: Money market is an instrument used to provide flow of short term funds in the economy. It consist of…

Q: Which of the below is NOT TRUE with respect to secondary markets A. Secondary markets assist…

A: Primary market - is the place where company sell new shares to the investors for the first time i.e…

Q: Which of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

Q: What are the major instruments traded in capital markets?

A: The capital market helps provide a platform where financial instruments are issued by the firms to…

Q: The weak form of the efficient market hypothesis states: All information is known by all market…

A: According to random walk theory, also known as the Efficient market hypothesis, there are three…

Q: Which of the following is not an advantage of going public

A: Going 'public' means that a privately held company becomes listed after offering an IPO and hence…

Q: Financial risk is the additional risk that stockholders face as a result of using debt, as opposed…

A: Risk denotes the variability in return. When the return fluctuates, then the risk of the security…

Q: What does signaling theory say about capital structure?     Answers: Investors believe managers…

A: Stocks are the units of equity capital of the corporation that the corporation issues in the…

Q: b. How do you think accounting irregularities affect the pricing of corporate stock in general? From…

A: ACCOUNTING IRREGULARITIES:  It is an entry or statement that does not conform to the normal rules of…

Q: Indicate whether its TRUE or FALSE. Then give an explanation. Firms concerned with the sharemarket…

A: Dividends often tend to be sticky in most cases because companies are reluctant to change dividends…

Q: The cash flows associated with common stock are more difficult to estimate than those related to…

A: Common stock is the pool of common shares that a company issues

Q: In the role of the Phillippines Stock Exchange, which of the following assures that no investor will…

A: PSE or Philippine Stock Exchange is referred to as the private non-profit organization as well as…

Q: Financing activities do not include cash outflows to O stockholders to repurchase common stock.…

A: Cash flow from Financial activities is cash inflows and cash outflows from day to day financial…

Q: Which of the following statements about Capital structure is not true Select one: a. None of the…

A: Capital structure is the proportion of funds to be financed by various types of sources of funds.…

Q: The cost of retained earnings is less than the cost of ordinary shares because of *

A: Issuance cost: This is incremental cost directly associated with issue of ordinary shares. This cost…

Q: Which of the following is not an impairment indicator for investment securities? Group of answer…

A: The objective of the question is to identify which among the given options is not considered an…

Q: Stock dividends are ________ costly to issue than cash dividends. What is the missing word?

A: Cash dividend is exposing company to double taxation. The cash dividend is taxable in the hands of…

Q: Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity.…

A: Appropriating retained earnings will have no effect on total stockholders' equity. Appropriating…