23.Consider the following stock market reaction to the information contained in a company's announcement.A corporation has just announced that it must pursue the issuance of company equity.We could expect to see in the price of company stock. (a)arise (b)a drop (c)a rapid rise (d)zero change Answer:(b) 24.Consider what the stock market reaction to the following announcement would be.A corporation has just announced that it is engaging in a stock split of the company's shares We could expect to see a in the overall market capitalization rate and a in the price of company stock. (a)rise:drop (b)drop;rise (c)rise;drop (d)rise;drop Answer:(a) 25.The is the proposition that an asset's current price fully reflects all publicly available information about future economic fundamentals affecting the asset's value (a)public markets hypothesis (b)efficient markets exchange rates (c)fundamental value proposition (d)efficient markets hypothesis Answer:(d) 26.The market price of an asset reflects the of all analysts'opinions with heavier weights on analysts who control large amounts of money and on those analysts who have better than average information (a)best estimate (b)weighted average (c)highest estimate (d)lowest estimate Answer:(b) 7-77-7 23. Consider the following stock market reaction to the information contained in a company’s announcement. A corporation has just announced that it must pursue the issuance of company equity. We could expect to see ________ in the price of company stock. (a) a rise (b) a drop (c) a rapid rise (d) zero change Answer: (b) 24. Consider what the stock market reaction to the following announcement would be. A corporation has just announced that it is engaging in a stock split of the company’s shares. We could expect to see a ________ in the overall market capitalization rate and a ________ in the price of company stock. (a) rise; drop (b) drop; rise (c) rise; drop (d) rise; drop Answer: (a) 25. The ________ is the proposition that an asset’s current price fully reflects all publicly available information about future economic fundamentals affecting the asset’s value. (a) public markets hypothesis (b) efficient markets exchange rates (c) fundamental value proposition (d) efficient markets hypothesis Answer: (d) 26. The market price of an asset reflects the ________ of all analysts’ opinions with heavier weights on analysts who control large amounts of money and on those analysts who have better than average information. (a) best estimate (b) weighted average (c) highest estimate (d) lowest estimate Answer: (b)