Identify stocks of firms that are undervalued

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1. Which of the following statements are true if Mike’s analysis involves analyzing publicly available company financial statements, government data, and industry reports and attempting to identify stocks of firms that are undervalued?

Statement 1: There could be predictable benefits from Mike’s analysis in markets that are not efficient.

Statement 2: There could be predictable benefits from Mike’s analysis in markets that are weak form efficient.

Statement 3: There could be predictable benefits from Mike’s analysis in markets that are semi-strong form efficient.

Statement 4: There could be predictable benefits from Mike’s analysis in markets that are strong form efficient

2. Nel's Place has total sales of $1,200, costs are $715, and depreciation is $145. The tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?

$93.08

$224.40

$310.60

$369.40

$600.60

Reference no: EM131321380

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