Which of the Following Is/are Way(s )That Short-Term Market Deviations

question 21

Multiple Choice

Which of the following is/are way(s ) that short-term market deviations from a particular company's intrinsic value might play a role in the decisions of the managers?
I.When making acquisitions,a manager might pay with shares instead of cash when the stock market overprices the shares relative to intrinsic value.
II.If the multiples in a particular sector are too high,a manager of a firm that owns a subsidiary in that industry might consider divesting the subsidiary.
III.If the multiples in a particular sector are too low,a manager of a firm that owns a subsidiary in that industry might consider divesting the subsidiary.
IV.When making acquisitions,a manager might pay with cash instead of shares when the stock market overprices the shares relative to intrinsic value.

• A)I and II.
• B)I and III.
• C)III and IV.
• D)IV only.

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Definitions:

Indian Lands

Territories within the United States reserved for Native American tribes by the government, recognized as sovereign entities with certain levels of autonomy.

Virginia Planters

Wealthy landowners in colonial Virginia who dominated the social and political life of the region, primarily through their extensive cultivation of tobacco using enslaved labor.

Conflict

Involves a serious disagreement or argument, often a protracted one, which can occur between individuals, groups, or nations.

Chesapeake Families

Refers to the socio-economic structures and family systems predominant in the Chesapeake Bay region during the colonial and early American periods.