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Amazon and Google are competing for the government's cloud storage solution contract. If awarded, it would increase the winning firm's market value by $7.5 billion.

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Amazon and Google are competing for the government's cloud storage solution contract. If awarded, it would increase the winning firm's market value by $7.5 billion. Assume Amazon has 800 million shares outstanding and Google has 425 million shares outstanding. The market widely expects that the contract will be awarded to Amazon. However, in a surprise announcement, the contract is awarded to Google. Prior to the announcement, the market has given a probability of 90% for Amazon to win the contract and 10% for Google to win the contract. What would be the change in stock price to Amazon stock as a result of this surprise announcement? $8.44 decrease $15.88 decrease $15.88 increase $8.44 increase

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