Part d is independent of part c. Given your understanding of…
Part d is independent of part c. Given your understanding of how investors determine the price of a company’s stock, how might investors respond to earnings that are “aggressively” managed? Be sure to define what you mean by “aggressively managed.” Note:I do not want a specific example of how earnings are managed. Think about some of the characteristics that increase/decrease earnings quality. The Earnings Management Continuum (Stice and Stice, page 91 of the coursepack) may be helpful. Be sure to provide a complete discussion to earn full points.
Read Details