1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sashaice [31]
3 years ago
13

Stockbridge Sprockets Inc. earned $2.25 per share last quarter, and $2.50 in the last quarter of 2019. Because of declining dema

nd for sprockets, analysts’ consensus estimates for the company for this quarter are $1.90 per share. If the company’s actual earnings announcement is $2.00 per share, absent any other news, what could the price of the stock be expected to do following the announcement?
A. Go up
B. Go down
C. Go either up or down
D. Remain unchanged
E. There is nothing in the data provided that would cause the stock price to move
Business
1 answer:
pochemuha3 years ago
4 0

Answer:

A. Go up

Explanation:

The actual earnings was more than the analysts' estimate. It is a positive surprise to the market. So, the stock price goes up all else being equal.  The stock price goes up, not down , hence Option B is incorrect. Option C is incorrect because all else being equal, the stock price goes up . Also, the stock price does not remain unchanged, it goes up  hence Option D is incorrect. Lastly, there is sufficient data to say that the stock price goes up when there is a positive surprise hence Option E is incorrect.

You might be interested in
When nations increase production in their area of _________________ and trade with each other, both sides can benefit.
Elenna [48]

Answer:

comparative advantage

Explanation:

Comparative advantage in finance is crucial for production because it helps nation to manufacture their goods with low opportunity cost compare to their co- partner in that production line.

Production which is an essential aspect in economics is a process of turning raw materials into finished goods are very crucial in each nation of the world and for economic process to be completed.

It should be noted that When nations increase production in their area of comparative advantage and trade with each other, both sides can benefit from it.

7 0
3 years ago
A SWOT analysis stands for what
timofeeve [1]

Answer:

Strengths, Weaknesses, Opportunities, and Threats analysis

Explanation:

3 0
2 years ago
A small pizza restaurant, founded and owned by the Martinelli sisters, would be expected to have which of the following? a.Low i
Marrrta [24]

Answer:

d.High inventory turnover and low gross margin

Explanation:

Inventory Turnover Ratio is ratio of 'cost of goods sold' to 'average inventory level'. Gross margin is the difference between net sales revenue & c.o.g.s

A small pizza restaurant, by Martinelli sisters, would be expected to have :

  • High Inventory Turnover : It reflects that inventory is quickly converted into liquid cash, & there is less average inventory level management. Both these aspects are applicable to the pizza restaurant
  • Low Gross Margin : Being a small restaurant, it is less likely to have competitive, high price charge advantage. So, the gross margins are expected to be low.
8 0
3 years ago
The only nail salon in town offers two services: manicures and pedicures. The salon has two types of customers: one type of cust
horsena [70]

Answer:

Pbundle = $48, Ppedicure = $32, Pmanicure ≥ $24

Explanation:

Type                  pedicure    manicure  combined WTP

Sandals wearer      $32                  $8                  $40

Boot wearer            $24                 $24                  $48

Two possible bundle prices = 40 & 48

                         High bundle price                low bundle price

P-bundle                    $48                                              $40

P-pedicure            $32                                             $24

P-manicure            $24                                             $16

The price of the services should be given as;

Pbundle = $48, Ppedicure = $32, Pmanicure ≥ $24

7 0
3 years ago
You have just been promoted from a supervisory role to a mid-level management position overseeing several work teams. You are ea
AveGali [126]

A good manager must first have a knowledge of the company's set of ethics and policies, and exercise it in an exemplary manner. Leadership is also an important factor for good management, a good leader should be open to dialogue, exercise inclusion and participation, assisting employees in their difficulties and motivating them with example, organization and discipline.

5 0
3 years ago
Other questions:
  • Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of
    8·1 answer
  • Year to year rightward shifts in​ long-run aggregate supply leads to
    5·1 answer
  • When a job is completed in a service organization, the job costs are transferred to the?
    5·1 answer
  • How are information systems transforming business and why are they so essential for running and managing a business today?
    12·1 answer
  • Suppose that firm a dislikes hiring black accountants, while firm b is happy to hire them. so ted ends up working at firm b rath
    13·1 answer
  • Which investment vehicle carries the least risk?
    7·1 answer
  • A company had common stock with a total par value of $18,000,000 and fair value of $62,000,000; and 7% preferred stock with a to
    9·1 answer
  • Suppose that over the past year, the real interest rate was 6 percent and the inflation rate was -2 percent. It follows that a.
    12·1 answer
  • The following are budgeted data: January February March Sales in units 16,000 22,000 19,000 Production in units 19,000 20,000 18
    9·1 answer
  • Prepare an income statement for Jay Pembroke for the month of April 20xx using the account balances given below. Cash $13,561 Ac
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!