a. True or False (with a brief explanation): Will the following actions increase
ID: 2775542 • Letter: A
Question
a. True or False (with a brief explanation): Will the following actions increase the stock price (at least in the short run)?
Managing earnings to meet (or beat) expectations?
Bribing or otherwise inducing analysts to set the bar low?
Lying to investors about unprofitable investments?
Announcing increases in dividends?
Cutting Research & Development expenditures to increase reported earnings?
b. True or False (with a brief explanation): Do the following actions create value?
Managing earnings to meet (or beat) expectations?
Bribing or otherwise inducing analysts to set the bar low?
Lying to investors about unprofitable investments?
Announcing increases in dividends?
Cutting Research & Development expenditures to increase reported earnings?
Explanation / Answer
a)
Option d is correct.
Announcing increases in dividends
Explanation:
It is an indication to the outside world about the company efficiency.
b)
Option a is correct.
Managing earnings to meet (or beat) expectations?
Explanation:
It will enhance the company functioning.
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