Information asymmetry is chief among violations of which of the assumptions of an ideal capital market?
a. Capital Markets are frictionless
b. Homogeneous expectations
c. Atomistic competition
d. The firm has a fixed investment program
e. Once chosen, the firm's financing is fixed
B
Business
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The probability of rejecting a lot with quality better than the acceptable quality level is:
A) the lot tolerance percent defective. B) the lot tolerance percent acceptable. C) the consumer's risk. D) the producer's risk.
Business
The dividend policy that states smoothing of the dividend stream in order to minimize the effect of company reversals is called the
A) increasing-stream hypothesis of dividend policy. B) stable dividend policy. C) clientele effect policy. D) residual payout policy.
Business