how do the upward trend and downward trend of share price(stock price changes) relates to the market efficiency (weak,semistrong,strong form)

Q: Why is P/E Multiples Approach better than book value per share when it comes to valuing the stocks…

A: P/E is a better approach because it uses earnings that reflect the performance of a firm.

Q: Do the Market-value ratios relate a firm's stock price to its earnings and book value per share?…

A: The market value ratios are generally used to assess the current stock price of a public listed…

Q: Which of the following does NOT directly affect a company's cost of equity? Select one: a. Return…

A: The capital asset pricing model (CAPM) describes the relationship between the expected return and…

Q: How to use Return on Equity ratio to determaine whether a company needs to issue stocks or bonds to…

A: Return on equity is a ratio which is used by companies to measure financial performance and helps…

Q: The issue as to whether dividend policy has an effect on share prices raises a question as to…

A: Bird in hand theory of dividend policy says that investors prefer dividend as compared to capital…

Q: Explain the three varying characteristics of common shares.

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

Q: In this section we examine three theories of investor preference: The dividend irrelevance theory.…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Theory believes that dividend or capital gains has an impact on the price of the stock Select the…

A: Dividend relevance theory:- This theory says that the dividend or capital gain paid by the firms is…

Q: discuss about Technical Analysis, Fundamental Analysis and Efficient Market Hypothesis(EMH) in Stock…

A: The Efficient Market Hypothesis (EMH) is a theory that states that all known information about…

Q: Which of the following statement is most correct? The cost of capital for internal common stocks is…

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

Q: A. Why is the goal of financial management to maximize the current share price of the company's…

A: The answer for the question on the financial management is discussed hereunder : What is Financial…

Q: _________________ are stocks that provide value to investors by companies reinvesting their profits…

A: Investment is done in stocks based on the investment goals of the investor. Conservative investors…

Q: Compared to top-down investing, bottom-up investing: A) focuses on macro economic issues. B) focuses…

A: Bottom-up investing "focuses on macroeconomic issues".

Q: In the simple Keynesian model of income determination, investment is O the buying and selling of…

A: in the Keynesian determination of national income there is mainly to methods which include saving…

Q: Stock market analyst. Explain isnvesting style

A: Stock market Analyst:- A stock market analyst is an equity analyst whoes main work is to find good…

Q: Using the corporate valuation model approach, what should be the company's stock price today?

A: Free cash flow = (EBIT*(1-T)) + Depreciation exp. - Capital expenditure - Changes in working capital…

Q: Explain how holding a portion of the earnings (Plowback ratio) could increases the stock price.

A: Answer: The term plow back is used in fundamental analysis which measure to what extent earnings are…

Q: A dividend valuation model such as the following is frequent. where: Pi = the current price of…

A: A dividend valuation model is given in question is a constant growth model which assume that…

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: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: What is meant by the term “distributionpolicy”? How has the mix of dividend payoutsand stock…

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: Describe and compare (i) the Simple Earnings Capitalisation Model, (ii) Burgstahler & Dichev's…

A: (i) Simple earnings capitalization model: Simple earnings capitalization model determines the value…

Q: Explain how to calculate rate of return on common stockholder’s equity.

A:

Q: To identify the cost of equity, which models are better: The dividend growth model or CAPM-derived…

A: The question is based on the comparative study of the methods to derive cost of equity. Cost of…

Q: discuss the critical issues invlove in implementing the dividend growth model approach and the…

A: Critical issue with “Dividend Growth Model Approach”: Dividend Growth Model is utilized to value an…

Q: alculation of which if the following metrics require knowledge of the company’s share price? Choose…

A: Dividend yield The dividend yield is the ratio of the current share price of a company and the…

Q: Briefly describe what an equity carveout is, and what is the typical stock price  reaction for…

A: Equity carve-out is a divesting methodology wherein a parent company sells a small portion of its…

Q: Which is not one of the three sources of return for an investor in a common stock? A-debt…

A: The capital structure of a firm consists of common stock, preferred stock and debt.

Q: Selecting dividend stocks and bonds that increase faster than the rate of inflation is a type of . .…

A: Financial securities are an important source for investment in which the investor can allocate his…

Q: How to calculate selling price, markups, markdown, stockturn rate, and return on investment.

A: Financial Ratio: A financial ratio, or bookkeeping proportion, is the general size of two chosen…

Q: Indicate whether statements regarding dividends is true or false. Stock dividends help keep the…

A: Dividend is the amount of profit which is distributed to the shareholders as a return on the shares.…

Q: crease an

A: The shareholders' will be considered as the owners of the company. The bond holders, and debenture…

Q: Some practicing financial analysts focus on Earning Per share as major determinant of a firm's share…

A: Earning per share depicts the earnings of equity shareholders against the amount of capital invested…

Q: How does preferred stock compare to long-term debt? In what respects is this comparable to equity?

A: The preferred stock and common stock are the financial instruments to raise money from the market.

Q: How does one calculate the capital gains yield and the dividendyield of a stock?

A: Capital gain yield: The capital gain yield mainly refers to the increase in the security’s price,…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.