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Question Help Robus, Inc., a nacturer of flash memory, just reported that its main production facility in Taiwan was destroyed in a fire Athough the

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Question Help Robus, Inc., a nacturer of flash memory, just reported that its main production facility in Taiwan was destroyed in a fire Athough the plant was fully insured the loss of production wil decrease Roya's cash flow by S15 million at the end of this year and by 563 million at the end of your a If Robustus 30 million shes outstanding and a weighted average cost of capital of 12.1%, what change in Heybus's stock price would you expect upon this arouncement? me that the Roybuss dents b. Would you expect to be able to sell Roybus stock on hearing this wouncement and make a profit? Explain a Roybus has 30 million shares outstanding and a weighted average cost of capital of 1215, what chuige in Roybu's stock price would you expect upon this moncamere? Assume that the value of Raybu's deia net affected by the event) The change in price per share would be found to the nearest cent) b. Would you expect to be able to short sel Roybus stock on hearing this announcement and make a profit? (Select the best choice below) A. Because the stock price is likely to drop on this news, you should be able to profit by buying the stock and selling it two years later, her the firm is fully covered OB. No trading profit is possible because your broker might not hande transactions on short notice OC. If this event is public information, no trading profit should be possible because in an eficient market the market price wil immediately drop to reflect this news OD. You should be able to profit by short selling the stock immediately and buying it once the market price has dropped

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