If No Price Change Occurs in a Stock on the Day

question 59

Multiple Choice

If no price change occurs in a stock on the day that it announces its next dividend,it can be assumed that:

• A) the stock market is inefficient.
• B) the dividend was reduced.
• C) the market was expecting this information.
• D) technical analysts are not following this stock.

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Definitions:

Departmental Overhead Costs

Expenses related to the indirect support of producing goods or services in specific departments, rephrased as the allocation of indirect costs to departmental operations.

Production Volume

The quantity of goods that a company produces within a specific period of time.

Utility Costs

Expenses incurred for basic services such as electricity, water, gas, and sewage, vital for running a business or household.

Cost Object

Anything for which a separate measurement of costs is desired, including products, services, projects, activities, or customers.