Capital market

Mr. Cheatem, a Partner of the CPA firm Dewey, Cheatem & Howe (DCH) believes that knowing how share prices respond to the release of Financial Statements, other accounting information, and other information will enable DCH to make money consulting on how to maximize share value via such releases and/or the choice of accounting policies.

Required:

Research the nature of Capital Market Reactions and write a =11/2 page memo discussing whether or not Mr. Cheatem’s proposal is viable.

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