A Question 19 (6 points) On September 13, 2019, the shares of LMN fell $15.14 to $45 22 on the New York Stock Exchange, a decline of 12.4%. The decline followed the release of the second quarter 2019 results LMN reported earnings of 37 cents per share compared to 30 cents for the same quarter of 2018 However, its 2019 earnings included an expense for stock-based compensation. If the second quarter of 2018 had included this expense earnings for that 2018 quarter would have been 26 cents per share Sales revenue rose 10% for the quarter, including a 3.5% increase in same store sales. Its gross profit rose to 25.5% of sales from 242% a year earlier. In its new release accompanying the financial results, management predicted earnings of 28 to 32 cents per share for its third 2019 quarter and emphasized that future annual growth in earnings would be around 26% Analysts had estimated second quarter 2019 earnings of 38 cents per share and third quarter earnings of 34 cents The New York Stock Exchange Composite index closed at 7,650 3 on September 13, 2019 and at 8,020 2 on September 12, 2019. LMN's stock beta is 175. The risk-free interest rate is 0.0002 per day Instructions: Round percentages including intermediate calculations to 2 decimal places. For example, a percentage with 2 decimals would be 9.98% which is the equivalent of 0.0998. In providing your final barsanumba MIST.be formation Dahatamsansa number RI O g DELL its third 2019 quarter and emphasized that future annual growth in earnings would be around 26% Analysts had estimated second quarter 2019 earnings of 38 cents per share, and third quarter earnings of 34 cents The New York Stock Exchange Composite index closed at 7,650,3 on September 13, 2019, and at 8,0202 on September 12, 2019 LMN's stock beta is 175 The risk free interest rate is 0.0002 per day Instructions: Round percentages including intermediate calculations to 2 decimal places. For example, a percentage with 2 decimals would be 9 98% which is the equivalent of 0.0998 In providing your final numbers, these numbers MUST be formatted properly That means the number has a percentage sign and is rounded to 2 decimal places and will not have any other spaces A number that is negative will need to have brackets surrounding the number. For example, a properly formatted number is 12 78% or (12.78% Part A Using the market model calculate the expected return The expected return is A/ Part B Calculate the abnormal return on LMN's shares. The abnormal return is. A/ O * 9 AS 4 6 ENG Part A Using the market model calculate the expected return. The expected return is A/ Parts Calculate the abnormal return on LMN's shares. The abnormal return is \/ Question 20 (5 points) A Question 19 (6 points) On September 13, 2019, the shares of LMN fell $15.14 to $45 22 on the New York Stock Exchange, a decline of 12.4%. The decline followed the release of the second quarter 2019 results LMN reported earnings of 37 cents per share compared to 30 cents for the same quarter of 2018 However, its 2019 earnings included an expense for stock-based compensation. If the second quarter of 2018 had included this expense earnings for that 2018 quarter would have been 26 cents per share Sales revenue rose 10% for the quarter, including a 3.5% increase in same store sales. Its gross profit rose to 25.5% of sales from 242% a year earlier. In its new release accompanying the financial results, management predicted earnings of 28 to 32 cents per share for its third 2019 quarter and emphasized that future annual growth in earnings would be around 26% Analysts had estimated second quarter 2019 earnings of 38 cents per share and third quarter earnings of 34 cents The New York Stock Exchange Composite index closed at 7,650 3 on September 13, 2019 and at 8,020 2 on September 12, 2019. LMN's stock beta is 175. The risk-free interest rate is 0.0002 per day Instructions: Round percentages including intermediate calculations to 2 decimal places. For example, a percentage with 2 decimals would be 9.98% which is the equivalent of 0.0998. In providing your final barsanumba MIST.be formation Dahatamsansa number RI O g DELL its third 2019 quarter and emphasized that future annual growth in earnings would be around 26% Analysts had estimated second quarter 2019 earnings of 38 cents per share, and third quarter earnings of 34 cents The New York Stock Exchange Composite index closed at 7,650,3 on September 13, 2019, and at 8,0202 on September 12, 2019 LMN's stock beta is 175 The risk free interest rate is 0.0002 per day Instructions: Round percentages including intermediate calculations to 2 decimal places. For example, a percentage with 2 decimals would be 9 98% which is the equivalent of 0.0998 In providing your final numbers, these numbers MUST be formatted properly That means the number has a percentage sign and is rounded to 2 decimal places and will not have any other spaces A number that is negative will need to have brackets surrounding the number. For example, a properly formatted number is 12 78% or (12.78% Part A Using the market model calculate the expected return The expected return is A/ Part B Calculate the abnormal return on LMN's shares. The abnormal return is. A/ O * 9 AS 4 6 ENG Part A Using the market model calculate the expected return. The expected return is A/ Parts Calculate the abnormal return on LMN's shares. The abnormal return is \/ Question 20 (5 points)