Equity Valuation Models Based on Dividends,cash Flows,and Earnings Have Been

question 10

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.

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Definitions:

Success-Disengagement Stage

A phase in the lifecycle of a business or career wherein achieving substantial accomplishments leads to reduced engagement or stepping away from active roles.

Supervision

The act of overseeing and managing the performance and productivity of employees to ensure tasks and objectives are accomplished.

Cash Flow

The sum of net income plus any noncash expenses, such as depreciation and amortization, or the difference between the actual amount of cash a company brings in and the actual amount of cash a company disburses in a given time period.

Regular Duties

These are the usual tasks or responsibilities assigned to a person in their job or role.