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]
2 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]2 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
Brian has just finished college. He wants to set up a small business to make and sell fireworks. He registers his company and ac
fiasKO [112]
<span>market economy market economy is the answer

I hope this helps!</span>
8 0
3 years ago
Read 2 more answers
Suppose the small town of Falls Valley has a mosquito problem. After a bad summer, the town accountants explain that the margina
Tresset [83]

Answer:

The town should provide the additional mosquito control only if the marginal benefit generated for the residents of Falls Valley is equal to or greater than  $100,000.

Explanation:

The town must use the same logic as any business, they only increase their activities when MR ≥ MC, in this case the marginal revenue equals the benefits generated by the mosquito treatment.

7 0
3 years ago
Calculate the future value of an investment of $463 for 10 years earning an interest of 9%? (Round your answers to 2 decimal pla
Anon25 [30]

Answer:

$1,096.09

Explanation:

The computation of the future value by using the following formula is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years  

= $463 × (1 + 0.09)^10

= $463 × 2.367363675

= $1,096.09

We simply applied the above formula so that the future value could arrive and the same is to be considered

7 0
3 years ago
The total cost of Jurislon to be purchased in August is: Multiple Choice $1,839,600 $1,208,700 $1,014,300 $1,017,000
ivann1987 [24]

Answer:  $‭1,014,300‬

Explanation:

The company wants to maintain 20% of the next month's needs as ending inventory.

One Miniwap requires 2.5 kg of Jurision to be made.

Materials purchased is;

= Ending inventory + Materials used - Begining inventory

Ending Inventory;

= 20% of September Jurision

= 20% * 21,300 * 2.5

= 10,650 kg

Materials used

= 2.5 kg * August Miniwaps

= 2.5 * 22,600

= 56,500 kg

Materials Purchased = 10,650 + 56,500 - 10,800

= 56,350‬ kg

Cost of Jurision is $18 per kilo

= 56,350‬ * 18

= $‭1,014,300‬

3 0
3 years ago
Whom do progressive taxes asses
grin007 [14]

Answer

Hi,

Progressive tax assesses a taxpayer’s ability to pay. Higher rates are on the wealthy than on the poor.

Explanation

Those considered poor according to a country’s definition have families who spend larger shares of their income on the cost of living thus all money they earn is needed to afford basic needs thus face a decreased progressive tax. On the other hand, the progressive tax imposed on wealthy individuals decrease their abilities to purchase more luxury items or invest in stock.

Hope this helps!

6 0
3 years ago
Read 2 more answers
Other questions:
  • Cypress Systems Inc., of Florida, agrees to sell specialized hydroponic growing equipment to Landcaster's of Australia. Because
    6·1 answer
  • Ten years ago, Cary Company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. On the maturity date of January 2, a
    8·1 answer
  • Which of the following statements is more closely related to independence in fact, rather than independence in appearance? Multi
    5·1 answer
  • Population of household composition, price of real estate in the area, availability of mortgage credit, consumer tastes, and inc
    14·1 answer
  • Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $14.1 million, and the company paid
    12·1 answer
  • Leveraging the expertise of people across an organization can help _____.
    7·1 answer
  • Economics ch 7 <br> What are the 2 barriers to entry in a market
    14·1 answer
  • Cold, Inc., reported a $100,000 total tax expense for financial statement purposes in year 1. This total expense consisted of $1
    11·1 answer
  • Which general staff member directs management of all incident.
    14·1 answer
  • What has changed in the recent past that now makes working from home a viable solution for business and workers?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!