Question: 4a: Arrow Inc. has been using straight-line amortization for its capital assets for many years. Management is considering a change to accelerated amortization but has

4a: Arrow Inc. has been using straight-line amortization for its capital assets for many years. Management is considering a change to accelerated amortization but has concerns that this accelerated approach may cause confusion among some investors concerning the potential effects of the change on share prices.

Discuss three conditions under which the change from straight-line amortization to accelerated amortization for capital assets will not have an impact on Arrows share price. (4 points)

4b. If Arrow is operating in an efficient market, explain whether it needs to present its financial information in a manner that everyone can understand.(3 points)

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