On 1/10/85, the following announcement was made: Early today the Justice Department reached a decision in the

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On 1/10/85, the following announcement was made: “Early today the Justice Department reached a decision in the UPC case. UPC has been found guilty of discriminatory practices in hiring. For the next five years, UPC must pay $2 million each year to a fund representing victims of UPC policies.” Should investors not buy UPC stock after the announcement because the litigation will cause an abnormally low rate of return over the next five years?

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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