Question: Show that an owner of P V Ltd in Example
Show that an owner of P. V. Ltd. in Example would not care whether P. V. Ltd. paid any dividend at the end of year 1. State precisely why this is the case.
Answer to relevant QuestionsShow that an owner of P. V. Ltd. in Example would not care whether P. V. Ltd. paid any dividend at the end of year 1. Assume that the good- economy state was realized in year 1.Do you think that the market value of an oil and gas firm will be affected when RRA information is presented in addition to historical cost- based earnings from oil- and gas- producing activities? Explain why or why not.P Ltd. operates under ideal conditions of certainty. It has just bought a capital asset for $ 3,100, which will generate $ 1,210 cash flow at the end of one year and $ 2,000 at the end of the second year. At that time, the ...The following RRA information is taken from the 2015 annual report of Moonglo Energy Inc.Balance of proved reserves: beginning of year.......... $ 1,070 Sales, net of production costs ................ (456) Sales of ...Explain in your own words what “post announcement drift” is. Why is this an anomaly for securities market efficiency? Give two behavioural biases that could generate post announcement drift.
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