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Profits are down so the controller decides to change the coporations accounting policy relating to inventory costing.

Profits are down so the controller decides to change the coporations accounting policy relating to inventory costing. The change will allow the corporation to report highr income and higher assets, although the physical inventory has not changed.
a) the stock price is likey to increase because income is higher
b) If the stock price increases, the stock market is efficient
c) the stock price is likely to decrease because reported inventory is higher
d) the stock price is likely to be unaffected because the stock market is efficient
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Finance - 8077968.doc

Profits are down so the controller decides to change the coporations accounting policy relating to
inventory costing. The change will allow the corporation to report highr income and higher...

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