On 25 June 2020, Qantas announced a post-COVID recovery plan which will see several job losses as well as a fresh injection of capital (capital raising) with the aim that Qantas will emerge as a stronger airline. Announcing the plan, the Qantas Group CEO Alan Joyce has said:The Qantas Group entered this crisis in a better position than most airlines and we have some of the best prospects for recovery, especially in the domestic market, but it will take years before international flying returns to what it was. We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short term. Most airlines will have to restructure in order to survive, which also means they'll come through this leaner and more competitive. For all these reasons, we have to take action now. The detailed ASX-announcement made by Qantas can be viewed at: https://www.asx.com.au/asxpdf/20200625/pdf/44jy0tcyp3h22r.pdf

Required: Based on your analysis (from Appendices), discuss whether your expectations are consistent with your findings.

Appendix 1: Spreadsheet calculations

You MUST set up the excel spreadsheet using the template and round numbers to 2 decimals.

Event: 25 June 2020: post-COVID recovery plan and equity raising Date All Ords Index Return on Index QAN share price QAN share return Predicted Return Abnormal Return Alpha Beta CAR-1 day CAR-2 day CAR-5 day