Question

Part A

A number of investigations have been undertaken into use made by shareholders of the annual reports of companies which they have invested. Some of these show that the annual report is regarded as significant source of information for making decisions on equity investments. Other types of learning indicate that the market price of shares in a company does not react in short term to the publication of the company's annual report.

Required:

How would you reunite these findings with each other, and with capable market hypothesis?

Part B

There are dissimilar sources of finance available for a business. These know how to be from external sources and internal sources. When considering various external sources of finance, it is probably cooperative to distinguish between long term and short term sources.

Required:

Illustrate three long term external sources of finance that can be existing to finance a business.