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Betterstock just changed its inventory method. This change leaves taxes unchanged, but the resulting earnings report released this quarter is 25% higher than it would
Betterstock just changed its inventory method. This change leaves taxes unchanged, but the resulting earnings report released this quarter is 25% higher than it would have been under the old accounting system. The report contains no other surprises, and the change in the inventory method was publicly announced. Assume the market is efficient. Will the stock price be higher when the market learns that the reported earnings are higher ?
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