Quiz Ch 07 – Implications of Market Efficiency
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What are the implications of market efficiency?
What are the implications of market efficiency?
Which factor is NOT aligned with a firm that is selling for a price very close to its book value?
What outcome is more probable for firms with valuable intangible assets?
What does a positive PVGO indicate about the firm?
What assumption can be made when a stock’s price remains unchanged on the day it announces its next dividend?
What does it likely indicate when The Wall Street Journal lists a stock’s dividend as $1?
What motivates investors to buy stocks with high Price-to-Earnings (P/E) ratios?
What is the likely direction of stock prices when the general sentiment of investors is pessimistic?
Which statement is accurate regarding the assessment of stock prices?
What is a crucial lesson that corporate financial managers can learn from market efficiency?