Conventional wisdom is that
A)investors value a company's stock based on sustainable operating earnings.
B)investors focus on one-time special charges and write-offs.
C)"big bath" items adversely affect stock price.
D)restructuring an organization causes bankruptcy.

Question

Quizplus · Accepted Answer

Conventional wisdom suggests that investors value a company's stock based on sustainable operating earnings rather than one-time special charges or write-offs. This is because sustainable operating earnings are a better indicator of a company's future profitability and growth potential.

Conventional Wisdom Is That