A company announces that its earnings have increased 50 percent over the previous year, which matches analysts
Question:
A company announces that its earnings have increased 50 percent over the previous year, which matches analysts’ expectations. What is the likely effect on the stock price?
a. The stock price will increase.
b. The stock price will decrease.
c. The stock price will rise and then fall after an overreaction.
d. The stock price will not be affected.
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Step by Step Answer:
In this scenario the most likely effect on the stock price is d The stock price will not be affected ...View the full answer
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Mehwish Aziz
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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