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Question
Which of the following is NOT a way that managers of most companies could improve their communication to investors?
a) Increase their understanding of their investor base.
b) Respond more actively to analysts’ comments and the changing P/E ratio of the firm.
c) Tailor communications to the investors that matter most in determining share price.
d) Engage in a systematic analysis to determine if there really is a material discrepancy between their company’s intrinsic value and its market value.
Answer
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Related questions
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The best method for understanding how much value a bank is creating in its different product lines is:
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In a two-scenario model of an emerging market, it is recommended that the analyst create a base-case set of forecasts and a set of forecasts associated with a period of economic distress. Which of the following best represents the range of probability weights to assign the economic distress scenario?
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For emerging markets, the recommended input for the risk-free rate for computing beta is:
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When calculating gross investments, it is appropriate to add the increase in the foreign-currency translation reserve to capital expenditures to obtain the actual cash spent on capital investments.
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An analyst should make financial projections of income statements and balance sheets for a valuation in a high-inflation environment by simply projecting all items on a nominal basis.
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A firm that capitalizes R&D has more opportunity to manipulate short-term earnings compared to a firm that expenses R&D.
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Since interest costs, expected returns on plan assets, and amortization of losses are part of the compensation expenses for a firm, they should be considered to be a part of NOPLAT.
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