Why do noise traders have limited impact on a companys share price even when they make the
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
Noise traders move in and out of shares quickly and cause shortterm movement...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
Question Posted:
Students also viewed these Corporate Finance questions
-
A stock that currently trades for 40 per share is expected to pay a year-end dividend of 2 per share. The dividend is expected to grow at a constant rate over time. The stock has a beta of 1.2, the...
-
Why do you think an S corporation is limited to having common stock with no differences other than voting rights?
-
Given the earnings per share over the period 20052012 shown in the following table, determine the annual dividend per share under each of the policies set forth in parts a through d. a. Pay out 50%...
-
Table illustrates the quantities, marginal costs, average variable costs, and average costs of a competitive firm. Refer to table 4. How much is the unit profit at price =$30? [the problem is based...
-
The numbers of points scored by the Denver Broncos during the 2012 regular season Find the mean, the median, and the mode of the data, if possible. If any measure cannot be found or does not...
-
A 15kg block is attached to a spring of force constant 500 N/m and is resting on a frictionless horizontal table. Suddenly it is struck by a 3kg stone traveling horizontally at 8 m/s to the right,...
-
Use stepwise regression with \(F_{\mathrm{IN}}=F_{\text {OUT }}=4.0\) to find the "best" set of regressor variables for the Belle Ayr liquefaction data in Table B.5. Repeat the analysis with...
-
During the first month of operations (September 2014), Holt Music Services Corporation completed the following selected transactions: a. The business received cash of $50,000 and a building with a...
-
Details Email Exercise Purpose: To give students practice writing effective emails Instructions: Write a brief email to a friend or family member about your day. Be sure to include the following:...
-
Design a two players game of stack using C++ or Python as follows: two players are given n numbers as input and a stack to store these numbers. Initially, players push all input numbers into their...
-
Following the investor model presented in this chapter, what returns do noise traders make on their investments in the long term: negative returns, returns around zero, or positive returns? What...
-
Consider two companies that are identical except for their shareholder base. One companys shareholders comprise mostly noise traders, with mechanical investors making up the remainder. The others...
-
In the FQHE, how many occupied states can there be in a Landau level? What do you deduce about the description of the states of the electron?
-
Entity A, acquired entity B, which operated a TV channel. Entity B negotiates the sale of air time directly with advertisers who are mostly big companies. Advertisement contracts are negotiated...
-
Next, you meet Rothwold and Grymlin. Rothwold says, "Either I am a liar or Grymlin is a truth teller." Is Rothwold a liar or a truth teller? What about Grymlin? Explain your answer. In Exercises...
-
Let \(\mathbf{F}\) be a continuously differentiable vector field in \(\mathbf{R}^{3}, Q\) a point, and \(\mathcal{S}\) a plane containing \(Q\) with unit normal vector e. Let \(C_{r}\) be a circle of...
-
Go through the steps of an FMEA project for the process of taking a bath, shown in the following flowchart. Use a worksheet like the one in exhibit 8.9 to document your ideas. When completing the...
-
Take a look at Table 20-1. Suppose that the price of each digital app rises to $5.97. At the same time, the price of each wireless earbud falls to $2.70. Income remains unchanged at $26. Rework the...
-
Describe the solvent properties that would (a) Favour displacement of Cl by I from an acid centre, (b) Favour basicity of R 3 As over R 3 N, (c) Favour acidity of Ag+ over Al 3+ , (d) Promote the...
-
The pendulum consists of two rods: AB is pin supported at A and swings only in the y-z plane, whereas a bearing at B allows the attached rod BD to spin about rod AB. At a given instant, the rods have...
-
Suppose that when TMCC offered the security for $24,099, the U.S. Treasury had offered an essentially identical security. Do you think it would have had a higher or lower price? Why?
-
The TMCC security is bought and sold on the New York Stock Exchange. If you looked at the price today, do you think the price would exceed the $24,099 original price? Why? If you looked in the year...
-
The TMCC security is bought and sold on the New York Stock Exchange. If you looked at the price today, do you think the price would exceed the $24,099 original price? Why? If you looked in the year...
-
S&J Catering is a small catering business operating in Western Sydney. Business partners, Jack and Simon, established the business a year ago. To start up the business, the partners contributed...
-
In 20X1, Lee was hurt in the course of his employment with Foster Farms. In 20X1, Lee was paid the following amounts from Foster Farms' worker's compensation insurance company: $30,000 for a physical...
-
Briefly describe tax administrative matters including: Tax collection and withholding mechanisms (PAYG withholding, PAYG instalments).
Study smarter with the SolutionInn App