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Batflix, Inc. (BFLX) reported mixed financial news for March, 31 2022 relative to analyst expectations. Earnings per share (EPS) were $3.53, a first time decline

Batflix, Inc. (BFLX) reported mixed financial news for March, 31 2022 relative to analyst expectations. Earnings per share (EPS) were $3.53, a first time decline of 5.9% from the same period last year, but greater than the analyst prediction of $2.89. Revenue growth was the slowest in 3 years, but it met the analyst predictions exactly. Global paid streaming memberships was 221.6 million, missing analysts' predictions by nearly 3 million. Cash flow from operations (CFO) were 922.84 million, significantly higher than CFO for March, 31 2021 of 773.3 million, when earnings were the same ($3.53 per share).

  1. What steps would you take to design a study to examine the market reaction to Batflixs earnings release. You can make a list. (4 marks)

  1. What are the important assumptions you would be making in designing this study? You can make a list. (4 marks)

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