9

8 pts D Question 9 Genocea announces pulling one of its leading drugs from market, owing to its potential side effects. Its future expected earnings will decline by $80 million per year forever. Genocea has 100 million shares outstanding & equity cost of capital of 8%. If news surprised investors, what happens to Genocea stock price @ announcement? Immediate decline by $0 80 in stock price Gradual decline by $0.80 in stock price Immediate decline by $10 in stock price Gradual decline by $10 in stock price