The stock price of a company increases and the market
is deemed efficient. What assumption can be made?A. A
new, patented, product was introduced to the market.
B. New machinery was purchased with a useful life of 20
years.
C. Management is optimizing its resources and operating
efficiently.
D. Management hired new employees and invested in a
training program.
• Which statement is true about how the global market
affects the U.S.
A. A bad options trade executed by a foreign subsidiary of a
Wall Street bank will affect layoffs overseas.
B. A Bad derivatives trade executed by a foreign subsidiary of
a Wall Street bank will affect layoffs overseas.
C. American investors and fund managers make decisions
based on financial reporting standards developed and
financial statements audited overseas.
D. Foreign investors and fund managers make decisions
based on financial reporting standards developed and
financial statements audited overseas.
• What are secondary markets?
, A. Markets where securities are traded subsequent to the
initial offering.
B. Markets were securities are issued for the first time.
C. Markets were securities are issued through a competitive
sale.
D. Markets where securities are issued through a negotiated
sale.
• A special interest group in the U.S. has been lobbying
intensely for protectionism through increased tariffs and
trade restrictions, with the argument that it will save jobs
in the industry they represent. What is the most likely
result if they are successful?
A. Employees and shareholders of the domestic industry that
produce the protective goods will be hurt and thenation
will benefit.
B. The overall economy will benefit from trade restrictions and
tariffs.
C. Removing the trade restrictions and tariffs will result in a
net economic loss to the overall U.S. economy.
Employees and shareholders of the domestic industry D.
that produce the protected goods will benefit and
thenation will be hurt.
• What do the content and structure of a balance sheet
report?
The assets , liabilities , and equity at a point in time
, • What is the basis used to compute a company's income tax
expense? A. Pretax accounting income.
B. Taxable
income.
C. Net
operating
income. D.
Taxes
payable.
• What is the firm’s cash flow from financing, using the data
above?
Net Income $1000
Depreciation $300
Expense
Change in $600
operating
assets
Change in net $5000
PP&E
Change in long-term Liabilities $1000
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