Equity Valuation Models Based on Dividends, Cash Flows, and Earnings

question 30

Multiple Choice

Equity valuation models based on dividends, cash flows, and earnings have been the topic of many theoretical and empirical research studies in recent years. All of the following are true regarding these studies except :

• A) Share prices in the capital markets generally correlate closely with share value.
• B) Share prices do not always equal share values.
• C) Temporary deviations of price from value occur.
• D) Unexpected changes in earnings, dividends, and cash flows do not correlate closely with changes in stock prices.

Recognize methods used for forecasting demand and their applications.

Identify the role of sales and operations planning (S&OP) in aligning organizational functions.

Understand the types of demand (dependent and independent) and their influence on the supply chain.

Grasp the strategies for balancing supply and demand in manufacturing.

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