User Account

All Pages

Pros and cons of the sarbanes-oxley act

Assignment Help Finance Basics
Reference no: EM131411782

Josh and Mike are discussing the pros and cons of the Sarbanes-Oxley Act. While Josh argues that the act has a high compliance cost, Mike is of the opinion that companies can easily avoid these costs by choosing to go dark and delisting their shares from exchanges. Josh, in turn, states that such a choice comes with its own drawbacks. Which of the following statements best supports Josh's argument?

  • Companies that choose to go dark typically have only limited access to capital markets.

  • Executives of companies that choose to go dark are required to certify the accuracy of financial statements.

  • Mandatory annual audits by independent auditors are carried out regardless of whether or not companies choose to go dark.

  • Companies that go dark are required to file annual reports

Reference no: EM131411782

Questions Cloud

Estimate the cost of equity : The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC?
Draw a circuit diagram using any desired logic gates : A logic circuit has four inputs A, B, C, and D. Find the logic equations for the circuit if the output is to be high only when an odd number of the inputs is high. Draw a circuit diagram using any desired logic gates.
Describe a real-world business decision : describe a real-world business decision that you had to make or a problem that you had to solve for which there was no clear solution. Describe the problem in as much detail as possible within the length guideline.
What is probability that laura will have to pay for lunch : Are the simple events equally likely? If not, why not?- What is the probability that Laura will have to pay for lunch and leave the tip?
Pros and cons of the sarbanes-oxley act : Josh and Mike are discussing the pros and cons of the Sarbanes-Oxley Act. While Josh argues that the act has a high compliance cost, Mike is of the opinion that companies can easily avoid these costs by choosing to go dark and delisting their shar..
Draw the final circuit using only nor gates : We wish to design a logic circuit with four inputs A, B, C, and D. The output is to be high only when a majority of the inputs is high. Draw the final circuit using only NOR gates.
Whether given pairs of events are mutually exclusive : Two fair dice, one red and one green, are tossed. Explain whether the following pairs of events are mutually exclusive, independent, both, or neither:
Statements weakens gina argument : Gina argues that although the act requires the management of a company to explicitly declare in writing that a company's financial statements accurately and fairly represent the financial results, no steps have been taken to ensure that this rule ..
Evaluate japanese policing and investigative agencies : Review Chapter in the textbook and analyze Japanese policing, the court structure and trial process, and corrections. Evaluate the Japanese criminal justice system and compare it to the United States. Evaluate Japanese policing and investigative a..

Reviews

Write a Review

Finance Basics Questions & Answers

  What should he or she be willing to pay for morris

If an investor has a 25 percent required rate of return for this stock, what should he or she be willing to pay for Morris?

  What factors are responsible for the recent surge

What factors are responsible for the recent surge in international portfolio investment?

  Relationship between strategic and financial planning

Using the same organization your Team wrote about in Week 2, write a paper in which you describe the relationship between strategic and financial planning. Include the following:

  What is the daily dollar return that could be earned

Average daily collections are $122,000, and the required rate of return is 5 percent per year. Assume 365 days per year. What is the daily dollar return that could be earned on these savings?

  Preferred stockholders have a priority over bondholders in

1. which of the following statements is correct?a. the preferred stock of a given firm is generally less risky to

  Williams inc has the following mutually exclusive

williams inc. has the following mutually exclusive investment opportunities. if the appropriate discount rate was 15

  Asymmetric information in explaining financial intermediatio

Examine the role of asymmetric information in explaining financial intermediation.

  What are the costs of retained earnings and new common stock

The company currently pays a $2.10 cash divident and has a 6 percent growth rate. What are the costs of retained earnings and new common stock?

  Evaluating a potential buyout

You work for a leveraged buyout firm and are evaluating a potential buyout of U Company. U's stock price is $20, and it has 2 million shares outstanding. You believe that if you buy the company and replace its management, its value will increase b..

  The bottom of the word document

Please write a minimum of two paragraphs answering the above question in a word document. Please also give an example that supports your answer. If you use any outside resources please site at the bottom of the word document .

  Evaluate the annual depreciation allowances

Find what initial cash outlay is required for the new machine? Round your answer to the nearest dollar and evaluate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense

  Question based on big mac purchasing power parity

The problem is belongs to financial basics and it is explains The exchange rate in June 2005 was 2,300 pesos per US Dollar. So, on Big Mac purchasing power parity grounds the Colombian peso was i. _________.ii. Briefly Explain?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd