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.

---

Definitions:

Equipment Acquisition

The process of obtaining physical assets for use in production or operations, often through purchase or lease.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Indirect Method

The indirect method is an approach used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate cash flow from operating activities.

Net Income

Represents the earnings of a company after subtracting all costs and expenses from total revenue, indicating the company's financial health.