Question 1

f a company releases new information that their sales are considerably lower than expected what will most likley happen to the price of the share?

		The price will remain the same. The information has already been incorporated into the price.
		The price will increase.
		The price will decrease.
		There will be a trading halt imposed on the share.

Question 2

Which of the following events would likely cause the firm's share price to drop?

		None of the above.
		Management had forecasted profit of $12 million, but actual profit was $7 million.
		Last year's profit was $500,000 and this year's profit was exactly what management had forecasted, $1 million.
		Management had forecasted a loss of $23 million due to COVID19, but the actual loss was $14 million

Question 3

The concept of time value of money refers to

		the timing of a cash flow does not matter
		the timing of a cash flow matters
		cash flows can be compared directly even if they occur at different times
		the fact that most people prefer money later, rather than earlier