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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.

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Receive 1 million in cash gift do i have to file taxes
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Gift tax is not an issue for most people

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The person gifting files the gift tax return, if necessary, and pays any tax. If someone gives you more than the annual gift tax exclusion amount ($15,000 in 2020), the giver must file a gift tax return.

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2 years ago
Refer to the diagrams. The numbers in parentheses after the AD1, AD2, and AD3 labels indicate the levels of investment spending
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Answer:

Decrease the money supply from $120 to $100

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If the monetary authorities reduces aggregate demand from AD3 to AD2, money supply decreases from $120 to $100. This decrease will cause a decrease in consumer spending. There will be a reduction of price levels and real output.

This is also called contractionary monetary policy and it causes interest rate to be higher there by reducing investments.

4 0
3 years ago
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2020 Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lowe
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Answer:

Morally, how about we start with business morals. Extensively business morals spin around progressively the estimation of the business to investors or partners (contingent upon the type of private enterprise). In the event that redistributing work diminishes costs and converts into expanded benefits for the organization, that is sufficient to consider it in accordance with the all-encompassing order of the business whether or not there is a decrease in cost for the buyer.  

Is it morally wrong to use innovative advances to build creation productivity when request in a market is generally inelastic? Cultivating used to be 40% of American employments. Presently it's generally 2% but then out creation has developed.  

Long haul the pulverization of a class of business is regularly counterbalanced by the formation of another classification the requires increasingly psychological assets. Actually, whole new enterprises can be made. So it is additionally not so much exact to restrict your view to simply the individuals who are dislodged from their occupations. It is completely conceivable that the net impact on the economy is sure.  

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7 0
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Bernadette would like to generate intrinsic motivation in her employees because she feels it will ultimately lead to better perf
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The correct answer is letter "E": Enjoyment.

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Thus, if Bernadette would like to promote intrinsic motivation among her employees, she must make sure the activities they perform at work at of their interest and enjoyment.

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The management of Krach Corporation would like to investigate the possibility of basing its predetermined overhead rate on activ
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Answer:

<em>16,800 dollars.</em>

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<em>Overhead rate predetermined at availability. </em>

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