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Consider that there is a strong form of efficiency in the markets. A pharmaceutical company announces that it has received Federal Drug Administration approval for

Consider that there is a strong form of efficiency in the markets.
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the companys earnings per share (EPS) is $5.00, and insiders agree with analyst expectations. They too expect that, with this new drug, earnings will drive the EPS to $5.00. What will happen when the company releases its next earnings report?

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