Question

1. (TRUE or FALSE?) If a company is liquidated, creditors are paid in a priority order...

1. (TRUE or FALSE?) If a company is liquidated, creditors are paid in a priority order according to the structure of the firm's financial contracts and prevailing bankruptcy law?

2. (TRUE or FALSE?) Many people really believe that market prices of public securities reflect all available information because it is widely accepted that insiders have information that is always reflected in the security prices immediately, and therefore the concept of strong-form market efficiency represents the real case rather than the ideal world.

Homework Answers

Answer #1

1)

TRUE.  If a company is liquidated, creditors are paid in a priority order according to the structure of the firm's financial contracts and prevailing bankruptcy law. They have the first priority.

2)

FALSE.

Many people really believe that market prices of public securities reflect all available information because it is widely accepted that insiders have information that is always reflected in the security prices immediately, and therefore the concept of strong-form market efficiency represents the real case rather than the ideal world

This is not true in real life. If a person know he exploit it but id does not get reflected in the stock price.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
TRUE or FALSE 1) One of the key conclusions of capital asset Pricing Model is that...
TRUE or FALSE 1) One of the key conclusions of capital asset Pricing Model is that it is impossible to perform better than the market in a persistent way? 2)The weak form of the market efficiency hypothesis states that securities prices incorporate all available public information about them? 3)The seller of a put option has an interest in the price of the underlying security falling?
The premium paid on an option contract (either a put or a call) represents the compensation...
The premium paid on an option contract (either a put or a call) represents the compensation the buyer of the option receives from the seller (writer) of the option for the ability to use the option if it becomes profitable. If the buyer of the option does not use the option before expiration, this premium must be returned back to the seller (writer) at the time the option expires. True False 2 points    QUESTION 3 On the day of...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information and coordination, incentive structures, property rights, and mechanisms for public choices. 2. All economic systems can be classified as market capitalism or centrally planned socialism. 3. Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while those of Central and Eastern Europe have done the best. 4. Capitalism relies primarily on material incentives, while planned socialism and...
All of these are True or False question, please find full correct and precise answers with...
All of these are True or False question, please find full correct and precise answers with Gregory and Stuart, Comparing Economic System in the Twenty-First Century, 7th edition. 1.Classification criteria for economic systems include decision-making systems, mechanism for information and coordination, incentive structures, property tights and mechanism for public choices. 2.All economic systems can be classified as market capitalism or centrally planned socialism. 3.Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT