Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 15 Not yet answered Marked out of 2.00 Consider the following scenario. The media discloses that company A will acquire company B. Almost all
Question 15 Not yet answered Marked out of 2.00 Consider the following scenario. The media discloses that company A will acquire company B. Almost all analysts agree that this is a very good news for company A. The media also discloses that the acquisition will occur on Jan 15, 2021 and the price is 4 billion dirhams. On Jan 15, 2021, the media announces that the acquisition has occurred exactly as predicted. That is, A acquires B for 4 billion dirhams. Which one of the following statements is most correct? P Pag question Select one: a On Jan 15, 2021, the stock price of A should move up because of the good news. b. On Jan 15, 2021, the stock price of A should drop because the news is quite expected On Jan 15, 2021, the stock price of A should move up because what was expected is now a reality, d. On Jan 15, 2021, the stock price of A should not move by much because the news is quite expected
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started