If a public test of a new product that has been publicly known to be under development at your company shows sensational results and is therefore expected to lead to a large positive NPV of future cash flows for your company (but likely to lead to an NPV which is less than what investors were expecting before the public announcement), explain whether your stock can be expected to go up or down on the news in a semi-strong efficient market where security prices reflect all information as it becomes public. Company is birkshire hathaway
If a public test of a new product that has been publicly known to be under development at your company shows sensational results and is therefore expected to lead to a large positive NPV of future cash flows for your company (but likely to lead to an NPV which is less than what investors were expecting before the public announcement), explain whether your stock can be expected to go up or down on the news in a semi-strong efficient market where security prices reflect all information as it becomes public. Company is birkshire hathaway
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- If a public test of a new product that has been publicly known to be under development at your company shows sensational results and is therefore expected to lead to a large positive
NPV of future cash flows for your company (but likely to lead to an NPV which is less than what investors were expecting before the public announcement), explain whether your stock can be expected to go up or down on the news in a semi-strongefficient market where security prices reflect all information as it becomes public. Company is birkshire hathaway
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