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frosja888 [35]
2 years ago
15

A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that complet

ely prevents hay fever. The consensus analyst forecast for the company’s earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00. What will happen when the company releases its next earnings report?
Business
1 answer:
IrinaVladis [17]2 years ago
6 0

Answer:

stock price will not change at all

Explanation:

Based on the information provided it can be said that when the company releases its next earnings report the stock price will not change at all. This is because stock markets move fast, the stock price of EPS moved when the in the announcement about FDA approval was made. Therefore the markets already expect these changes to reflect on the earnings report so prices will not move. Just as the saying goes, "Buy the Rumor, Sell the news."

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Answer:

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According to the National Association of Colleges and Employers, the average starting salary for Chemical
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A

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A firm must choose among three alternative ways to compensate its salaried employees. It can pay them at the end of each week, a
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The Palace Hotel Group purchased Orange Roof Hotels for an estimated value of $120 billion. All the hotels previously owned by O
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This scenario best illustrates an acquisition.

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7 0
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"Preemptive rights" means that Multiple Choice existing shareholders can prevent management from issuing additional common stock
Ymorist [56]

Answer:

Preemptive rights mean:

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In that case,

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