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Capital Budgeting
The process of planning and evaluating expenditures on assets whose returns are expected to extend beyond one year.
Earnings
The amount of profit that a company produces during a specific period.
Signaling Effect
The signaling effect is a theory in economics and finance suggesting that actions taken by a company, such as dividend announcements or share repurchases, send signals to the market about the company’s financial health and prospects.
Stock Prices
Stock prices are the current market price at which shares of a company can be bought or sold. They fluctuate based on demand and supply, company performance, and market conditions.
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