multiple-choice 19 20 21

19.Fun Tyne plc declares a dividend payment of 20p per share. Ignoring taxes and the time value of money, and assuming that markets are efficient, you would expect stock price to: Immediately increase by 20p on the payment date Immediately increase by 20p on the exdividend date Immediately decrease by 20p on the declaration date Immediately decrease by 20p on the ex-dividend date None of the above EDP-OFT!\" 20.Globex Corporation plc shares are currently trading at $5.00 each. Management wishes to raise capital to expand the business and announces a rights issue. Existing shareholders will be given the right to purchase one share at $3.00 for each three shares currently held. Which of the following statements is correct? The ex rights share price is 2.00 and the value of one right is 3.00 The ex rights share price is 4.17 and the value of one right is 2.00 The ex rights share price is 4.50 and the value of one right is 0.50 The ex rights share price is 5.00 and the value of one right is 2.00 None of the above $099.6! 21.Lois selects securities to invest in after carefully examining the fundamentals of a company, using the accounting statements in its annual reports. Peter seeks to earn abnormal returns solely by studying stock price charts and investing based on the patterns he finds in the past prices. Which one of the following statements is correct? a. If Lois earns abnormal returns this violates weak-form market efficiency. lf Peter earns abnormal returns this violates strong-form market efficiency. b. If Lois earns abnormal returns this violates strong-form market efciency. lf Peter earns abnormal returns this violates weak-form market efficiency. c. If Lois earns abnormal returns this violates semi-strong form market efficiency. If Peter earns abnormal returns this violates strong-form market efficiency. d. If Lois earns abnormal returns this violates semi-strong form market efficiency. If Peter earns abnormal returns this violates weak-form market efficiency. e. If Peter and Lois both earn abnormal returns this means that markets are strongform efficient