Question
B Co has just released its financial results for the year and its profits before tax increased by 38% over the previous year. This was
B Co has just released its financial results for the year and its profits before tax increased by 38% over the previous year. This was due largely to a doubling of sales in South-East Asia. However, the share price in B Co fell by almost 20% immediately after the profit announcement. Which of the following is the LEAST likely explanation for the fall in share price?
Options:
Sales in South-East Asia had been expected to increase by more than 100%
The depreciation charge was higher due to a change in accounting policy
The level of B Cos business risk has increased over the year
Delays in the launch of new products are expected in the coming year.
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