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
nadya68 [22]
3 years ago
12

A pharmaceutical company announces that it has received Food & Drug Administration (FDA) approval for a new allergy drug tha

t completely 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. If the markets are assumed to exhibit strong form efficiency, 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:
Natali [406]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:

If the markets are strong form efficient, it means the consensus of the market related to future impact of FDA approval on earnings would be correct, the stock price of today correctly estimates the future earnings, and therefore the stock price would not change when the earnings are released.

You might be interested in
To sell to Joann, you need to appeal to her ego. She'd rather hear that your new product will make people notice her as an innov
Rom4ik [11]

Answer:

The answer is B. Expressive social style.

Explanation:

From the details given about Joann, the  characteristics she portrays shows her as an individual with an expressives social style.

Individuals with expressive social styles prefer seeks personal approval and more willing to make their feelings known to others. The expressives  are characterized by high assertiveness and high responsiveness.    

3 0
3 years ago
Maldo Geronimo conducts two-day training sessions for an oxygen equipment company. When he traveled last month, his lodging was
Finger [1]
Here is the answer. Given that Maldo Gernonimo spent $235 per night and he stayed for 2 nights so the total is $470. $46 per day so the two days is $92. And the transportation is $535. To sum this up, the total is $1,097. Since he has a budget of $1,200, the maximum that he can spend on dinner each of the two nights is $97.5. Hope this helps. 
7 0
3 years ago
Read 2 more answers
Suppose that there are five different lemonade stands in the same neighborhood
shtirl [24]

Answer:

Decreased, increased

Explanation:

5 0
3 years ago
Read 2 more answers
All else constant, the net present value of a typical investment project increases when:
nekit [7.7K]

Answer:

The correct answer is letter "B": The rate of return decreases.

Explanation:

Net Present Value or NPV is a mathematical calculation used to determine if a project could be profitable or not. NPV is obtained by subtracting the present value of outflows from the present value of inflows, In case NPV is positive, it is expected a project will provide the firm profits, while a negative NPV implies the company incurring in losses.

<em>The Rate of Return (RoR) has an inverse relation with the NPV meaning if the RoR decreases the NPV will increase and vice versa.</em>

3 0
3 years ago
Although it is generally the case that service systems have enough capacity, waiting lines result when __________ exceeds capaci
ratelena [41]

Answer:

Demand

Explanation:

Service systems are available to facilitate the customers. Similarly, service systems are designed in such a way to have enough capacity to assist numerous people. When there is an increase in the demand it leads to demand exceeds capacity, and from here the waiting line problem starts. Only a sudden increase in demand can lead to waiting line issue, and the problem is resolved as soon as demand decreases.

7 0
3 years ago
Other questions:
  • Enny is a line manager at Maxvin Corp. She is assigned the task of understanding and gathering detailed information about the re
    11·1 answer
  • Everyone likes to have lydia working on their committees because she seems to have the unique ability to consider a variety of o
    13·1 answer
  • The tendency to immediately recall the first and last items in a list better than the middle items is referred to as the _______
    7·1 answer
  • Which of the following is true of liquidity? Select one: a. Liquidity metrics include debt ratio, times interest earned, and rat
    15·1 answer
  • Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell
    5·1 answer
  • Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The
    15·1 answer
  • How does dr.king relate James and John to everyone else?
    10·1 answer
  • The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production
    11·1 answer
  • Anna is a forensic scientist who still uses the methods used by Dr. Leone Lattes. How is this MOST likely demonstrated in Anna’s
    11·1 answer
  • During 2021, Sysco Corp. had 950,000 shares of common stock and 100,000 shares of 7% preferred stock outstanding. The preferred
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!