If a large group of investors tend to buy a company's stock, an individual might follow too. This statement is an example of:   Select one: Self-attribution Mental Accounting Herd Behavior The disposition effects Anchoring

Q: Suppose that you will predict the share price for X company next year using the present stock price…

A: In Behavioural finance studies we tends to trading in finance due to behaviour of investors and…

Q: Which of the following statements are true? Multiple select question. Since the par value…

A: Stock is defined as the security which represents the ownership of the fraction of the corporation.…

Q: how a firm might use stock options in order to incentivise a manager to work in the shareholders’…

A: Stock Options: These are incentives provided by the company for its employees to stay more…

Q: Firms must provide the right incentives if they are to get -Select-shareholderscreditorsmanagersItem…

A: Filled in the Blanks    Firms must provide the right incentives if they are to get managers to focus…

Q: which of the following statements is false? O When a buyer values a target firm, the appropriate…

A: Going concern value is a value that expects that the organization will remain permanently in the…

Q: Corporate decision makers and analysts often use a particular technique, called a DuPont analysis,…

A: ROE = Profit Margin x Total Assets Turnover x Equity Multiplier   Profit margin =…

Q: An investment bank’s clients wanted to manipulate its stock price in order to facilitate a better…

A: Here Investors bank provides helps to their client to manipulate its stock price to increase the…

Q: The primary goal of a publicly-owned firm interested in serving its stockholders should be to:…

A: Solution:- Publicly-owned firms are those firms in which majority of the stocks are held by the…

Q: Discuss the ethics of dividends and illustrate how dividends and related issues (e.g. dividend…

A: Business is the part of the society and gets various resources from society to conduct its business.…

Q: You believe that both financing and investing decisions contain fresh information   of firm’s…

A: For businesses, there are two primary forms of funding available: debt finance and equity financing.…

Q: Most firms like to have their stock selling at a high P/E ratio, and they also like to haveextensive…

A: Answer: Many investors use the dividend discount model to calculate stock price, which states…

Q: Modigliani and Miller (MM), on the one hand, and Gordon and Lintner (GL), on the otherhand, have…

A: The Modigliani and miller approach can be used for the dividend decision. This approach is an…

Q: According to the clientele effect, which (potential) investors might be attracted by high dividend…

A: The clientele effect explains the movement in the price of the stock of a company. The price moves…

Q: “The market capitalisation of a brand as reflected by their share price on the stock exchange is…

A: The market capitalization is the total current value of the equity in the organization. The market…

Q: .theory would deduce that corporate growth causes an increase in shareholder remittance .

A: The answer to this part is (d) Positive Accounting

Q: The dividend ____ states that investors will tend to be attracted to firms that have dividend…

A: The dividend "CLIENTELE EFFECT" states that investors will tend to be attracted to firms that have…

Q: The dividend ____ states that investors will tend to be attracted to firms that have dividend…

A: When the firm brings the change in the price of a company's stock price depends on the demands and…

Q: nvestment bankers argue that "pop" at an IPO is great for the company. "Pop" occurs when the stock…

A: Public Offering Price (POP) means the price of the new stock offered to the public. It is done by…

Q: Which is true in relation to stock market efficiency?

A: A.Market Price and Intrinsic value are inputs in determining whether a share is overvalued or…

Q: True or False: Based on the company’s earnings in a particular year, repurchases can be made on an…

A: Repurchase is purchase of own shares of company to distribute wealth among shareholders.

Q: Which of the following statements is CORRECT? Select one:

A: The question involves the Concept of Agency and its related problems. It is established between two…

Q: why would investors prefer to invest in a company with a regular divided policy than a company with…

A: Investors prefer to invest in corporations where dividends are received on regular basis. The reason…

Q: Which of the following statements is CORRECT?   Group of answer choices   When calculating the cost…

A: Preferred stock Dividends are not liable to tax- Hence the option is not correct. An increase in…

Q: Write out the equation of corporate value model, and why there is a need of corporate value model…

A: The calculation of theoretical value of stock is known as stock valuation. It is important tool to…

Q: The following are facts about Common Stock, Except:  Group of answer choices Represents ownership…

A: Common stock is one of the types of shares that are being issued by the company in order to raise…

Q: Which of the following statements is NOT true about Initial Public Offerings? A. An IPO occurs when…

A: Initial public offerings are the shares issued by private company for the first time to get itself…

Q: If a company’s board of directors wants management to  maximize shareholder wealth, should the…

A: Shareholders are the owners of the company who invest in the company. They expect dividends and…

Q: In developing a compensatory share option plan, a company's objective is to

A: Share option plan represents that the company offers the company the shares in order to reward them…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: Shareholder's Activism: Shareholder activism is a technique for shareholders to influence a…

Q: Dividend is a financing decision as well as distribution of earnings.  Do you agree with the…

A: Dividend is the distribution of the company’s earnings to the shareholders of the company. A…

Q: Finance experts contend that the ultimate goal of a firm should be maximization of shareholder…

A: The concept of shareholder wealth maximizationShareholders are the owners of the company.…

Q: When a firm earns its profits, management would usually decide to use the earnings for future…

A: The term profit or net income of a company refers to the revenue that is left after adjusting for…

Q: When looking to invest corporate dollars, is the top-down approach is preferred over the bottom-up…

A: Answer: Corporations are exposed to factors which are related to macroeconomic. Therefore, while…

Q: True or False Acceptability is concerned with whether an alternative addresses the key issues…

A: CFROI is the acronym of Cash Flow Return on Investment. It is a formula used to determine how much…

Q: subject to ethical

A: Maximizing shareholder wealth is the single or top priority for a company has led to a number of…

Q: There are various methods and techniques to pay dividend to shareholders. How would these…

A: There are various method of payment for dividends such as: Through cash (either through electronic…

Q: Stock exchanges want to be sure that investors have enough information to Select one: O a. Increase…

A: The stock exchange is a process of buying and selling securities of publically traded companies.

Q: Which of the following would be a viable way to earn abnormally high trading profits if markets are…

A: Semi-strong form EMH: According to this form all the information that is available to public is…

Q: Discuss the topic of maximizing shareholder wealth. This topic has been researched and studied for…

A: Shareholders wealth maximization can be described as the principle which only undertakes the actions…

Q: The firm uses measures from its financial statements to improve shareholder value. What element in…

A: Managers engage in transactions in order to boost the firm's worth. Of fact, the value of a company…

Q: Why do you think investor would want more than 50% large percentage control of a company as far as…

A: Control of the company: To have control over a firm is to own a sufficient number of voting shares…

Q: Is stock price maximization the same as profit maximization?

A: Shareholders are the owner of the firm whose main motive is to maximize the value of the firm.…

Q: The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be…

A: A publicly-owned firm is a public company whose capital is raised through the public issue and were…

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.