Which of the following would not be a reason to expect an increase in the market price of the stock of Carlyle Corporation?
A. Carlyle Corp. has a history of earnings growth.
B. The market price has been influenced by positive financial information that is not provided in the financial statements.
C. Investors believe Carlyle Corp. has potential for earnings growth.
D. Investors expect that revenue and earnings growth in the future will not be as great as revenue and earnings growth has been in the past.
Answer: D
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Material misstatements in the financial statements, including those requiring restatements strongly imply a material weakness in which of the following?
a. Income statement. b. Balance sheet. c. Internal control over financial reporting. d. Cash flow statements.
On January 1 . 2014, Comas Corporation acquired Partly, Inc as a long-term investment for $250,000 (a 30 percent common stock interest in Partly). On that date, Partly had net assets with a book value and current market value of $800,000 . During 2014, Partly reported net income of $85,000 and declared and paid cash dividends of $20,000 . What is the maximum amount of income that Comas should
report from this investment for 2014? a. $25,500 b. $21,000 c. $6,000 d. $33,000
U.S. GAAP and IFRS require firms to initially report the results of most income transactions in the
a. retained earnings bypassing the income statement. b. income statement instead of bypassing the income statement and reporting the amounts in some other shareholders' equity account. c. paid-in-capital bypassing the income statement. d. retained earnings bypassing the income statement. e. treasury stock bypassing the income statement.
In ____________________ analysis, each financial statement line item is expressed as a percent of a base year, which is typically the earliest year shown
Fill in the blank(s) with correct word