If you find one profitable insider trading strategy that consistently eams abnormal risk-adjustod expected returns in a financial market, then The market may be weakly efficient O O O The market may be semi-strongy efficient There must be at least one technical analysis that is profitable The market may be strongly efficient. The market must be inefficient There must be at least one fundamental analysis that is profitable. The Increase in the stock price after a dividend increase is called the information content effect. One explanation of the information effect is: o the dividend increase signaled investors to adjust the expectations of future earning upward. o the dividend increase signaled investors to adjust the risk of the firm downward. the dividend increase signaled shareholders that the firm could now payout less as they enter the mature phase of their business. o the increase in dividend was expected by shareholders. The MM theory with taxes implies that firms should issue maximum debt. In practice, this is not true because debt is riskler than equity. firms will incur large agency costs of short-term debt by Issuing long-term debt. bankruptcy is a disadvantage to debt. obot debt is riskler than equity and bankruptcy is a disadvantage to debt