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James received information concerning SSS about its 2022-2023 earnings on July 31, 2023. Net income was recorded at $95,000, up from 85,000 for the same

James received information concerning SSS about its 2022-2023 earnings on July 31, 2023. Net income was recorded at $95,000, up from 85,000 for the same quarter of the previous year. Return on equity was 30%, up from 15% a year earlier. Earnings for the year included a $40,000 gain on the sale of surplus property. Cash flow for the year was $120,000, up from $100,000 from the previous year. The reported profit of $95,000 was in line with analysts' expectations. On July 31, 2023, the market index of automotive stocks rose by 1%, as the market anticipated higher prices for automotive vehicles. Yet, SSS share price fell on the day by $2.30, to close at $42.80. Financial media at the time reported analysts' comments about a widening discount for Eastern European vehicles. SSS is solely in the Eastern European automotive market. Also, the company's production from its automotive projects declined in the last quarter of 2022 because of the conflict in Eastern Europe. Required: Use the market model to calculate the

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