A small company struggling to reach profitability just announced a major new government
contract that will validate its technology and generate revenue for the next several years. The
announcement of the contract will
A) cause the stock price to decrease because the government usually pays below market price for
the goods and services it purchases.
B) have no effect on the stock price because the company has not yet paid any dividends.
C) cause the stock price to increase because rcs (the required return) is likely to decrease and g
(the growth rate in future dividends) is likely to increase.
D) cause the stock price to increase because rcs (the required return) is likely to increase.
C
You might also like to view...
A process whereby the effect of fluctuations in level of activity is built into the budgeting system is referred to as flexible budgeting
Indicate whether the statement is true or false
Singapore Airlines Raffles Class is an example of a(n) ____________
a. branded house b. endorsed brand c. house of brands d. sub-brand e. clear strategy
Nina is a volunteer at an animal shelter who takes home animals that are scheduled to be put down
Even though her act results in her apartment often getting overcrowded and smelly, Nina does this because she considers it ethically wrong to willfully take the life of another living creature. Which of the following theories of ethical thought best explains Nina's behavior? A) act utilitarianism B) consequential theory C) deontology D) rule utilitarianism
Falsifying public records is forgery
a. True b. False Indicate whether the statement is true or false