Question

Which of the following would not be a reason to expect an increase in the market price of the stock of Carlyle Corporation? M

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The answer is "B" = Investor Expect that revenue and earnings growth in the future will not be as great as revenue and earnings growth has been in the past. In that case, the Market price will decrease instead of increasing because of negative sentiments.

Options A, C, D are incorrect because all these positive news which helps to increase the market price of the STock

Add a comment
Know the answer?
Add Answer to:
Which of the following would not be a reason to expect an increase in the market...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You would expect a stock _________________ when its intrinsic value is $26 and its stock market...

    You would expect a stock _________________ when its intrinsic value is $26 and its stock market price is $28.50. Multiple Choice a)has a beta > 1 b)will generate a positive alpha c)has a Tobin's q value < 1 d) has been overvalued.

  • Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease...

    Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease liabilities. Revenue decreases owners’ equity and expenses increase owners’ equity. Revenue increases owners’ equity and expenses decrease owners’ equity. Revenue decreases owners’ equity and increases liabilities. Which of the following statements is not true regarding the adoption of ASC Topic 606 guidance for revenue recognition? Multiple Choice When using the cumulative approach, the prior three years of financial statements need to be restated. Under...

  • 4. Among the following statements, only 3 are correct. Identify which ones. a) The market value...

    4. Among the following statements, only 3 are correct. Identify which ones. a) The market value of a company depends on its past earnings b) Growth in future earnings has an impact on the value of a company's stock c) Investors are more focused on cash flows than profit when valuing a company's stock d) Qualitative factors may impact the value of a company's stock e) The DCF valuation methodology relies on cash flow forecasts

  • 1. ABC, Inc., just paid a dividend of $1.36, and the company expect to grow its...

    1. ABC, Inc., just paid a dividend of $1.36, and the company expect to grow its dividend at a constant rate of 4%. What is ABC's required rate of return if its today's value based on the dividend discount model is $34.66, ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. a. The common stock of Russel, Corp. is currently selling at $60 and investors require a rate of return of 16%. Russel is expected...

  • Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A....

    Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A. Revenue represents a cash receipt; retained earnings is an element of stockholders' equity. B. Retained earnings is equal to assets minus expenses. C. Revenue represents the price of goods sold or services rendered; retained earnings represents cash available for paying dividends. D. Revenue increases net income, which in turn increases retained earnings. Which of the following is not a right of stockholders? Multiple Choice...

  • Explain under which conditions an increase in the dividend payment can be interpreted as a signal​...

    Explain under which conditions an increase in the dividend payment can be interpreted as a signal​ of: a. Good news. b. Bad news. a. Good news. Under which conditions can an increase in the dividend payment be interpreted as a signal of good​ news:  ​(Select the best choice​ below.) A. By increasing dividends managers signal that they believe that future earnings will be high enough to maintain the new dividend payment. B. Raising dividends gives investors more​ cash, so the...

  • 2. Rate of return implied in stock price A corporation has just paid a dividend of...

    2. Rate of return implied in stock price A corporation has just paid a dividend of $5.00, i.e. Do=$5.00. Due to its growth potential, its dividends are expected to grow at 5% per year starting with the next dividend. If Jerry decides to buy the stock at the current market price $42, what rate of return will he earn? 3. Find the intrinsic value of a share of common stock A corporation has not paid dividend in the past and...

  • Tango, Corp. expects to have an earnings per share of $4. The company will be paying out 50% of that earnings to its sha...

    Tango, Corp. expects to have an earnings per share of $4. The company will be paying out 50% of that earnings to its shareholders, with the rest retained in the company for future growth at rate of 20% each year. The share price of the company's stock is currently at $20. What rate of return do Tango’s investors require if its stock's intrinsic value has been reflected in the market price? (Do not round intermediate calculations.) Rate of Return =...

  • Whole Foods and Amazon Over the past decade, Whole Foods Market, Inc., has become an increasingly familiar part of the urban landscape. As of November 5, 2014, the company had 401 stores in the United...

    Whole Foods and Amazon Over the past decade, Whole Foods Market, Inc., has become an increasingly familiar part of the urban landscape. As of November 5, 2014, the company had 401 stores in the United States, Canada, and the United Kingdom. Using financial websites such as finance.yahoo.com and money.msn.com, you can access a wealth of financial information for companies such as Whole Foods. By entering the company’s ticker symbol, WFM, you will be able to access a great deal of...

  • Market value ratios Ratios are mostly calculated using data drawn from the financial statements of a...

    Market value ratios Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a firm’s observable market value, stock prices, and book values, integrating information from both the market and the firm’s financial statements. Consider the case of Cold Goose Metal Works Inc.: Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $8,000,000 and a current stock price of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT