Please provide simple answers:
1- Name and define your parameters precisely for two most commonly used ways in calculating the stock markets index? Give an example from the real stock market for each.\
2- Name three corporate finance decisions that are considered to be a credible signal to the market. Explain within the context of finance theory what should be the effect on such an announcement on the stock price if the market is efficient.
3- Explain the role of debts in financing the company? specifically the reflection of such sources of funds on the return on Assets (ROA) and the return on Equity (ROE).
4- Name two items from the Balance Sheet (B/S) that are most common problem in our Saudi Corporations managing. Explain your reasoning within the context of Finance theories.
5- Define the three degrees (forms) of stock market efficiency.
6- How to test each degree of Market Efficiency?