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frosja888 [35]
3 years ago
15

A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that complet

ely prevents hay fever. The consensus analyst forecast for the company’s earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00. What will happen when the company releases its next earnings report?
Business
1 answer:
IrinaVladis [17]3 years ago
6 0

Answer:

stock price will not change at all

Explanation:

Based on the information provided it can be said that when the company releases its next earnings report the stock price will not change at all. This is because stock markets move fast, the stock price of EPS moved when the in the announcement about FDA approval was made. Therefore the markets already expect these changes to reflect on the earnings report so prices will not move. Just as the saying goes, "Buy the Rumor, Sell the news."

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Sam student sends for a law school catalog from ivory towers university. according to the catalog, the law school applications a
7nadin3 [17]

If Sam had followed the guidelines in the college catalog, then there will be a valid contract that will be established as the school is likely to bound itself in honoring its obligations that are set forth in the college catalog. The correct answer is likely b.

5 0
3 years ago
The board of directors of Nash's Trading Post, LLC declared a cash dividend of $1.00 per share on 30000 shares of common stock o
Novay_Z [31]

Answer: debit to Dividends Payable.

Explanation:

When the dividend was declared in July 15, the dividend amount was debited to the Retained earnings to show that it was being taken from Retained earnings. It was then credited to Dividends payable to show that the company owed dividends to its shareholders.

On August 15, this liability will be paid off when the dividends are paid and so the Dividends Payable account will be debited to reflect this.

3 0
3 years ago
(1) eBay has a seller reputation system to provide (A) consumers with a signal concerning seller quality. (B) sellers a chance t
weeeeeb [17]

Answer:

The answer is (A) consumers with a signal concerning seller quality

Explanation:

The primary function of this system is to ensure the reliability and the quality of the seller to the customers. The system takes in to account the reliability of the payments, reliability of the delivery and the after sales activities such as return of goods.

5 0
3 years ago
To determine if a person is "in the business" of giving investment advice under the Investment Advisers Act of 1940, which of th
Harlamova29_29 [7]

Answer:

Correct Answer:

B. I and III only.

Explanation:

<em>Someone in business of giving business advise is known as an </em><u><em>investment adviser</em></u><em>. </em>

<em>An investment adviser is a person or firm that is engaged in the business of providing investment advice to others or issuing reports or analyses regarding securities, for compensation.</em> <em>Based on the definition above, the best option for the question is Option B.</em>

6 0
3 years ago
You own a stock that had returns of 10.10 percent, −15.86 percent, 19.54 percent, 23.76 percent, and 6.44 percent over the past
Travka [436]

Answer:

8.796%

Explanation:

Arithmetic average return = sum of returns / number of years

(10.10% −15.86% + 19.54% +  23.76% + 6.44 ) / 5 = 8.796%

5 0
3 years ago
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