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Viefleur [7K]
3 years ago
13

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 $5.00, and insiders agree with analyst expectations. They too expect that, with this new drug, earnings will drive the EPS to $5.00. What will happen when the company releases its next earnings report?
A) There will be some volatility in the stock price when the earnings report is released; it is difficult to determine the impact on the stock price.
B) The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
C) The stock price will increase and settle at a new equilibrium level.
Business
1 answer:
Black_prince [1.1K]3 years ago
3 0

Answer:

B) The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.

Explanation:

As explained in the question, the stock market consensus has been that even after the new drug was released, the stock price, and the earnings per share of the pharmaceutical company will remain the same, therefore, there will no volatility.

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blsea [12.9K]

Answer:

All of these options is true

Explanation:

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Using a cost-benefit analysis to make ethical decisions about research reflects a(n) _________ perspective.
hram777 [196]

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The term  Utilitarianism is known to be a kind of a theory that is based on morality and this is known to be one that tends to advocates for actions that brings about happiness or pleasure and it is one that is against actions that leads to unhappiness or harm.

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