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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.

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Explanation:

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8 0
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Classify each of the following costs as a direct cost or an indirect​ cost, assuming that the cost object is the Juniors Departm
Tems11 [23]

Answer:

a. Indirect Cost

b. Direct Cost

c. Indirect Cost

d. Indirect Cost

e. Indirect Cost

f.  Direct Cost

g. Direct Cost

h. Direct Cost

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j.  Indirect Cost

k. Indirect Cost

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Explanation:

The first step in determining whether a cost is a direct cost or indirect cost is to identify the cost object. This is very important !

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