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frosja888 [35]
1 year 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]1 year 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."

You might be interested in
The idea for "price profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by
egoroff_w [7]

Answer: Copyright law

Copyright is security for tangible aspects of an idea. It is intended to give the creator of something original the ability to use and make money from it, without others being able to use it themselves. There are a number of limitations that do allow for a widespread use, they protect the derivatives of an idea also called intellectual property. Copyright tends to cover literary and artistic work e.g. books, movies. To get a better idea copyright is the reason you just can’t print and sell harry potter books or download pirated movies

Since the "<em>price profit"</em> app is an idea it is protected by the copyright law.


7 0
1 year ago
Read 2 more answers
Which of the following has the greatest impact on your cash flow?
Deffense [45]

Answer:

 

Low-priced inventory with high turnover

Explanation:

GOT IT RIGHT IN QUIZ

6 0
2 years ago
Which statement is supported by the information in the
sleet_krkn [62]

Answer:C. The price per stock declined from 2008 to 2009

Explanation: the graph declines at 2008 and increases at 2009

5 0
1 year ago
Read 2 more answers
Identify the sales promotion technique based on the given scenario. Tara’s company has launched a new perfume. The company recen
Anestetic [448]

Loyalty Points From the Customers.

Explanation:

The company is trying to have loyalty points by reducing the gap between the customer and the organisation.

1. Since Tara's company has received bad publicity they are trying to improve as through various sales promotion techniques the customers perception towards the company and its product would change.

2. This would have a win-win situation at both the end. The Business would create not only monitory profits by also have loyal customers that are satisfies at the other end.

3 0
1 year ago
Record the issuance of additional shares for $1,469 cash; total par value was $1 and the rest was in excess of par value.
mel-nik [20]

Answer:

cash                       1,469 debit

  common stock                        1 credit

  additional paid-in             1,468 credit

--to record issuance of shares in exchange of cash--

Explanation:

We are given the fact that total par value of the shares is $1

thus, the remained will be additional paid-in excess of Common stock.

We debit the cash received as it is an asset

Then, we credit both, common stock and additional paid-in excess of Common Stock as they are equity accounts.

7 0
1 year ago
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