Company A has $100m shares on issue, currently at $3 each on the stock market. It is planning an investment costing $50m. It has been estimated that investment will have a net present value of $60m.

On 1st October the board of directors met to approve the investment and to confirm the funding of the investment is secured

On 8th October the company made an announcement about the investment in the stock market, investors welcomed the and the estimated forcast for the NPV has been generally accepted as credible.

If stock market dispoays semi-strong form efficiency, what will be the share price after the events of the 1st and 8th of October respectively?

1. $3 for both the the 1st and 8th

2. $3 for 1st and $3.10 after the 8th

3. $3 for the 1st and $3.60 after the 8th

4. $3.60 for both 1st and after the 8th

5. $3.10 for the 1st and $3.69 after the 8th