Overall, it appears that unexpected changes in earnings do affect ______ .

Question

Quizplus · Accepted Answer

Unexpected changes in earnings typically have a significant impact on the security prices, as investors react to new information about the company's financial performance and prospects. It may also affect the payout and retention ratios, as the company's management may decide to adjust its dividend policy or reinvestment plans based on the earnings surprise. However, intrinsic value, which reflects the underlying value of a company based on its assets, cash flow, and growth potential, may not be directly affected by earnings surprises, although it may indirectly influence investors' perception of the company's value.

Overall, It Appears That Unexpected Changes in Earnings Do Affect