If the Market Is Fully Efficient,then an Announcement by a Firm

question 52

Multiple Choice

If the market is fully efficient,then an announcement by a firm of a new product with a high net present value will cause the market price of that firm's stock to

• A)remain constant.
• B)rise gradually over the next few days.
• C)decline gradually over the next few days.
• D)immediately increase to a new level equivalent to the increased value of the firm.
• E)immediately decline to a new level equivalent to the decreased value of the firm.

Comprehend the purpose and use of different control systems (output, input, personal, bureaucratic) within organizations.

Recognize the role and impact of incentives and behavioral control in organizational management.

Identify the challenges and benefits associated with virtual and spatial organizations.

Analyze the significance and application of modular design in product development.

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Definitions:

Japan

An island country located in East Asia, known for its advanced technology, distinctive culture, and significant economic influence globally.

Trade Surpluses

Occurs when a country's exports exceed its imports over a given period, indicating a net inflow of domestic currency from foreign markets.

Productivity Rate

Measures the efficiency of production in an economy, often calculated as total output per unit of input, such as labor, over a specific period of time.

Current Account Deficit

A measurement of a country's trade where the value of the goods and services it imports exceeds the value of the products it exports.