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]
4 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:
pochemuha4 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
Apparels is lndias second largest manufacturer of branded lifestyle apparel the company now plans to diversify into personal car
Vladimir79 [104]

Answer:

Analyzing the information about Apparels, it is correct to state that the company is developing a strategic business expansion plan, with the aim of opening ten new exclusive retail stores in different cities and expanding its product lines by entering the segment of personal care with perfume lines and hair and skin care products.

Apparels' strategy is advantageous for companies consolidated in the market, which already have a good brand positioning and intend to conquer new market shares with the creation of new product lines. This can increase the company's profitability and market power, but the expansion strategy requires fixed capital capacity and capital management so that the strategies are carried out in accordance with the company's planning and the new costs of opening new stores and production, dissemination and distribution of new products.

6 0
3 years ago
What is licensure? I’m doing intro to business
bekas [8.4K]
The granting or regulation of licenses, as for professionals.
8 0
3 years ago
Pinpoint diagnostic laboratory has instituted new policies around misappropriation of assets, confidentiality of company informa
Marysya12 [62]

All the above policies may be found in Pinpoint Diagnostic Laboratory's Code of Ethics Manual.

<h3>What is a Code of Ethics Manual?</h3>

This refers to a code of conduct spelled out in black and white which every member of an organization must abide by. It is created to ensure the highest levels of professionalism, integrity, and honesty.

It guides the interactions of the employees with:

  • Other employees
  • Clients and
  • the Public

Please see the link below for more about the Code of Ethics Manual:

brainly.com/question/11471972

5 0
2 years ago
An article in the New Yorker magazine states, "the main burden of trade-related job losses and wage declines has fallen on middl
laiz [17]

Answer:

Option E.

Explanation:

In free trade, a country with a comparative advantage in a good produces that good in the long-term. Therefore, if these people are working in an industry in which it has a higher opportunity cost i.e. it does not have a comparative advantage; they will eventually see job loss or fall in income or both. On other hand, when they purchase goods which has lower opportunity costs in foreign, they get access to these at a lower price and can purchase a higher quantity. So, these people are both harmed and benefitted by free trade.

6 0
3 years ago
Mullineaux Corporation has a target capital structure of 46 percent common stock, 5 percent preferred stock, and the balance in
Jet001 [13]

Answer:

c. 11.02 percent

Explanation:

Weighted Average Cost of Capital (WACC) is the return that is required by the long term providers of Finance for the Business.

WACC = Ke × E/V + Kp × P/V + Kd × D/V

Where,

Ke = Cost of Equity

     = 15.8 %

E/V = Market Weight of Equity

       = 0.46

Kp = Cost of Preference Stock

     = 8.3 %

P/V = Market Weight of Preference Stock

      = 0.05

Kd = After tax Cost of Debt

     = 6.8 %

D/V = Market Weight of Debt

      = 0.49

Therefore,

WACC = 15.8 % × 0.46 + 8.3 % × 0.05 + 6.8 % × 0.49

           = 11.015 or 11.02 %

6 0
3 years ago
Other questions:
  • Stacey inherits unimproved land (fair market value of $6 million) from her father on June 1, 2019. She disclaims her interest in
    9·1 answer
  • The law of diminishing returns is often used to analyze the ideal amount of which factor of production?
    8·2 answers
  • ?the __________ refers to the seven stages a company goes through to recognize opportunities and convert them into sellable serv
    14·1 answer
  • Judy purchased a speedboat for $120,000. She was willing to pay $150,000. After a few years, she wanted to sell the boat for $85
    12·1 answer
  • Any point inside the production possibilities curve indicates:
    5·1 answer
  • Beech Company produced and sold 107,000 units of its product in May. For the level of production achieved in May, the budgeted a
    12·1 answer
  • Which journal entry reflects the following transaction?:
    9·1 answer
  • Free markets produce efficient results. Productive efficiency occurs as goods and services are produced using the least amount o
    14·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    9·1 answer
  • Which department would a marketing manager contact to make sure that enough product is on on hand for an upcoming promotion ?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!