There are various motivations for managers to make voluntary disclosures. Identify whether you believe managers are likely

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There are various motivations for managers to make voluntary disclosures. Identify whether you believe managers are likely to release the following information in the form of voluntary disclosure (examine each case independently):
a. A company plans to sell an underperforming division for a substantial loss in the second quarter of next year.
b. A company is experiencing disappointing sales and, as a result, expects to report disappointing earnings at the end of this quarter.
c. A company plans to report especially strong earnings this quarter.
d. Management believes the consensus forecast of analysts is slightly higher than managers’ forecasts.
e. Management strongly believes the company is undervalued at its current stock price.

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Financial Statement Analysis

ISBN: 978-0078110962

11th edition

Authors: K. R. Subramanyam, John Wild

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