Question
7. The term entry price means A. The price at which an asset can be sold in orderly markets B. The amount the company would
7. The term entry price means
| A. | The price at which an asset can be sold in orderly markets
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| B. | The amount the company would receive by selling the asset in orderly markets, less transaction costs
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| C. | The sales value assuming the company must sell immediately
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| D. | The price at which someone can buy the asset now. |
Question 8
Research indicates that all of the following statements are correct, except:
A.Stock price movements are more closely related to income statement information than cash flow information
B.Useful (but not perfect) models exist that use financial statement data to predict company bankruptcy.
C.Useful (but not perfect) models exist that use financial statement data to detect improper reporting of financial information.
D.Stock price movements are greater when a change in income is due to one-time items than when the change in income is due to persistent items.
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