I should be able to profit by short selling the stock immediately and buying it once the market price has dropped. No trading profit is possible because your broker might not handle transactions on short notice. Because the stock price is likely to drop on this news, I should be able to profit by buying the stock and selling it two years after the firm is fully recovered. If this event is public information, no trading profit should be possible because in an yfficient market the stock price will immediately drop to reflect this news. Roybus, Inc., a manufacturer of flash memory, just reported that its main production facility in Taiwan was destroyed in a fire. While the plant was fully insured, the loss of production will decrease Roybus's free cash flow by $175 million at the end of this year and by $57 million at the end of next year. a. If Roybus has 40 million shares outstanding and a weighted average cost of capital of 13.6%, what change in Roybus's stock price would you expect upon this announcement? (Assume that the value of Roybus' debt is not affected by the event.) b. Would you expect to be able to sell Roybus's stock on hearing this announcement anid make a profit? Explain. a. If Roybus has 40 million shares outstanding and a weighted average cost of capital of 13.6%, what change in Roybus's stock price would you expect upon this announcement? (Assume that the value of Roybus' debt is not affected by the event.) The change in price per share would be $ (Round to the nearest cent.)