Stock dropped substantially after the announcement

Assignment Help Financial Management
Reference no: EM13730336

Conagra just announced an earnings increase of 2%, but the price of the stock dropped substantially after the announcement. Is there a rational explanation for this result?

Reference no: EM13730336

Questions Cloud

Rationale for indexing according to both of these schools : Some advocates of behavioural finance agree with efficient market advocates that indexing is the optimal investment strategy for most investors. But their reasons for this conclusion differ greatly. Compare and contrast the rationale for indexing acc..
Large american airlines passenger jet crashes : A large American Airlines passenger jet crashes and news reaches the stock market during trading hours. Information is limited at first and then becomes more detailed. How would expect the price of American Airlines to move during this period?
You have been asked by your 60 year old uncle quentin : You have been asked by your 60 year old uncle Quentin to help him assess a new venture. It is Friday night, and he needs the work finished by Sunday in preparation for an early Monday morning meeting,
Highly efficient market or a relatively inefficient market : As a knowledgeable investor, would you prefer to invest in a highly efficient market or a relatively inefficient market? Explain. As an inexperienced investor, would you prefer to invest in a highly efficient market or a relatively inefficient market..
Stock dropped substantially after the announcement : Conagra just announced an earnings increase of 2%, but the price of the stock dropped substantially after the announcement. Is there a rational explanation for this result?
Fundamental analyst : Assume that you are a fundamental analyst that has just made the call of a lifetime by recommending a stock that doubled over the six months following your recommendation. You are now famous and have thousands of people that think you’re infallible a..
Attempting to fund : Assume that you are attempting to fund a $50,000,000 liability associated with the clean-up of an environmental site that will be due in seven years. If you don't meet the liability you will be out of business.
Required rate of return based on capital asset pricing model : Story brook, Inc. is currently selling for $25.50, with trailing EPS and dividends of $2.25 and $1.31, respectively. The company’s P/E is 11.3, P/B is 7.1, and P/S is 4.3. The ROE is 21 percent, and the profit margin on sales is 8.25 percent. The Tre..
What components make up the yield-to-maturity : How do you find the value of a bond, and why do bond prices change? What components make up the yield-to-maturity? What are the benefits to a company from including a call provision? What are the costs?

Reviews

Write a Review

Financial Management Questions & Answers

  Constructed a balance sheet reflecting this transaction

Scott is buying $5,000 worth of a stock with $4,000 in cash plus a $1,000 margin loan. If you constructed a balance sheet reflecting this transaction, the total assets would be:

  Q1amanda white has started a domestic cleaning business

q1amanda white has started a domestic cleaning business spotless view cleaning svc. she started the business on 1st may

  What is the expected net income for your firm next year

The forecast for your firm indicates there's a 20% chance that Net Income will be $200,000, a 50% chance it will be $300,000, and a 30% chance it will be $400,000. Assume your firm is zero-growth and pays all its net income in dividends each year Als..

  Percentage increase per year in winners check over period

In 1895, the first U.S. Open Golf Championship was held. The winner’s prize money was $150. In 2010, the winner’s check was $1,350,000. What was the percentage increase per year in the winner’s check over this period? (Do not round intermediate calcu..

  Explain what will the marginal cost of capital

What will the marginal cost of capital be immediately after that point? At what size capital structure will there be a change in the cost of debt

  What will be companys stock price following stock split

Company Z's stock trades at $45 a share. The company is contemplating a 3-for-2 stock split. Currently, the company has EPS of $3.00, DPS of $0.50, and 20 million shares of stock outstanding. Assuming that the stock split will have no effect on the t..

  Maturity risk premium for treasuries with maturities equal

The Wall Street Journal reports that the yield on a nine-month Treasury bond is 2.3 percent, the yield on a three-year Treasury bond is 2.9 percent, and the yield on a 10-year Treasury bond is 4.3 percent. Although no liquidity premium is associated ..

  What is the cost of common equity

Summerdahl Resorts' common stock is currently trading at $32.00 per share. The stock is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75), and the dividend is expected to grow at a constant rate of 6% a year. What is the..

  Estimate the bottom-up levered beta for rad

RAD has 916.18 million shares outstanding today, trading at $6.67 per share. Assuming that the book value of debt on its books, which is $5.904 billion, is equal to market value (of debt), estimate the bottom-up levered beta for RAD. The firm has a m..

  Part a consider the information below from a firms balance

part a consider the information below from a firms balance sheet for 2011 and 2012.current assets20122011change cash

  What must the expected return on the market be

A stock has an expected return of 10.5 percent, its beta is 1.15, and the risk-free rate is 5 percent. What must the expected return on the market be?

  What is the dollar amount of dividends

A man purchased a stock one year ago for $25. The stock is now worth $34, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends that he received for owning the stock during the year?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd