Which of the Following Would Probably Not Cause the Stock

question 63

Multiple Choice

Which of the following would probably not cause the stock price of a foreign target to decrease?

• A) Its expected cash flows decline.
• B) General stock market conditions in the foreign country are deteriorating.
• C) Investors anticipate that the target will be acquired.
• D) All of the above will cause the target's stock price to decrease.

---

Definitions:

Average Inventory

A means of measuring the approximate amount of inventory a company holds over a certain period, aiming to balance holding costs against stockout risks.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, interest, tax, and other expenses.

Ending Inventory

The total value of all inventory still available for sale at the end of an accounting period.

Income Statement

An Income Statement is a financial statement that shows a company's revenues and expenses over a specified period, culminating in net profit or loss.