A firms dividend policy can affect its value if:

a.

Managers invest in acquisitions that increase firm value.

b.

It varies between periods.

c.

It does not vary between periods.

d.

Managers do not invest cash flows optimally.

Clear my choice

Given an efficient market, what would be the ideal investment strategy?

a.

Maintain a well-diversified portfolio.

b.

Search for mispriced securities.

c.

Maintain a portfolio of investments comprised of only unavoidable risk.

d.

All of these choices.

Clear my choice

An overpayment on an acquisition is likely to be:

a.

Value diminishing for both target and acquiring shareholders.

b.

Profitable for target shareholders but diminishes the deals value for acquiring shareholders.

c.

Profitable for acquiring shareholders but diminishes the deals value for target shareholders.

d.

None of these choices.

Acquisition refers to a company:

a.

Acquiring control of a publicly listed company.

b.

Acquiring control of a private company.

c.

Acquiring control of a publicly listed company or a private company.

d.

None of these choices.

The implication of the random walk is that:

a.

Earnings are extremely hard to predict on the basis they are random.

b.

Prior years earnings are useful in considering future earnings.

c.

Earnings can either go up or down due to random factors.

d.

The consideration of future earnings should not involve prior years earnings as they are not useful.