QQAG just announced yesterday that its fourth quarter earnings will be 35% higher than last year's fourth quarter. You observe that QQAG had an abnormal return of 1.7% yesterday. This suggests that
A. the market is not efficient.
B. QQAG stock will probably rise in value tomorrow.
C. investors expected the earnings increase to be larger than what was actually announced.
D. investors expected the earnings increase to be smaller than what was actually announced.
E. earnings are expected to decrease next quarter.
C. investors expected the earnings increase to be larger than what was actually announced.
Anticipated earnings changes are impounded into a security's price as soon as expectations are formed. Therefore a negative market response indicates that the earnings surprise was negative; that is, the increase was less than anticipated.
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All marketing strategy is built on STP: segmentation, targeting, and ________
A) positioning B) product C) planning D) promotion E) performance
The compa-ratio equals an employee's pay rate divided by the pay range midpoint for his or her pay grade. It helps reveal how many jobs in each pay grade are paid above and below competitive market pay rates.
Answer the following statement(s) true (T) or false (F)
A major advantage of the target costing approach to pricing is that target costing
A) allows a company to analyze the potential profit of a product before spending money to produce the product. B) is not dependent on customers' quality-versus-price decisions. C) identifies unproductive assets. D) anticipates the product's profitability midway through its life cycle.
On January 1, Year 3, All Business Machines (ABM) issued 1,000 shares of its common stock for a building. Real estate appraisers estimated the building to have a market value of $55,000 on the date of acquisition. The common stock of ABM sold for $50 per share on the date of the acquisition. On January 1, Year 3, ABM paid $650 in real estate transfer taxes, $500 in real estate legal fees for
recording the transaction, $1,750 in property taxes for Year 3, and $2,000 for a two-year insurance policy beginning January 1, Year 3 . At what amount should the building appear in the Building account of ABM on January 1, Year 3? a. $51,150 b. $52,900 c. $56,150 d. $59,900 e. $61,900