Operational efficiency and informational efficiency
Distinguish between Operational efficiency and informational efficiency?
Expert
Operational efficiency and informational efficiency:
A) Operational efficiency concentrates on bringing buyers and sellers altogether at the minimum possible cost.
B) Markets show informational efficiency when market prices reflect all related information regarding securities at a specific point in time.
C) In an informational efficient market, the market prices adjust rapidly to new information concerning a security as it becomes obtainable.
D) Competition between investors is a significant driver for informational efficiency.
Baldwin Corporation is planning to expand into the business of providing on-demand movies. Baldwin has debt-to-equity ratio of .25, its pretax cost of debt is 9%, and its marginal tax rate is 40%. The Harrington Corporation is already in the on-demand movie business,
Regular supply of working capital: The working capital requirement (WCR) estimation helps to ensure that the supply of raw material, which is essential to production, is uninterrupted. Therefore, the firm will be able to get sufficient credits and fun
What are Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)?
Active vs. Passive fund managers: Passive fund managers adopt a long term buy and hold strategy. Usually, stocks are purchased so that the portfolio’s returns will track those of an
The 2010 income statements of Leggett and Platt, inc. reports net sales of $4,076.1 million in 2010 and $4,250 million in 2009. The balance sheet reports accounts and other receivables, net of $550.5 million at December 31, 2010 and $640.2 million at December 31, 2009
Is there any indisputable model for valuing the brand of a company?
AB Corp. is in the business of making white-board markers. They are computing the potential of investing in some new equipment that will enhance their manufacturing process. The initial cost of the latest machinery is $470,000 plus a one-time installation cost o
Assume that you are a financial manager of Yuen Cheong Manufacturng Company. Due to the rising demand of product X, Yuen Cheong Manufacturng Company decides to open a new production plant in China, so it needs to take a loan of US$1 million. Bank A offers Yuen Cheong
Types of agency: Specific types of Agency include:A) Auctioneers: Are an agent of vendor until the fall of the hammer when they become an agent for the purchaser.B) Q : What impacts have on value of a What impacts have on the value of a business of high inflation?
What impacts have on the value of a business of high inflation?
18,76,764
1924160 Asked
3,689
Active Tutors
1424258
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!