Which of the Following Is NOT One of the Three

question 10

Multiple Choice

Which of the following is NOT one of the three key assumptions underlying capital markets research:

• A)Expectations about dividends determine market price for shares.
• B)Accounting information can be used to form expectations about profitability.
• C)Expectations about profitability inform expectations about dividends.
• D)None of the above,i.e.they are ALL assumptions underlying capital markets research.

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Definitions:

Days' Sales

A financial metric that measures the average number of days it takes a company to convert its inventory into sales.