Question 24 (1 point) New Labs just announced that it has received a patent for a product that will eliminate all flu vi

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Question 24 1 Point New Labs Just Announced That It Has Received A Patent For A Product That Will Eliminate All Flu Vi 1 (97.52 KiB) Viewed 31 times

Question 24 (1 point) New Labs just announced that it has received a patent for a product that will eliminate all flu viruses. This news is totally unexpected and viewed as a major medical advancement. Which one of the following reactions to this announcement indicates the market for New Labs stock is efficient? The price of New Labs stock increases rapidly and then settles back to its pre- announcement level. The value of all stocks suddenly increase and then level off at their higher values. O The price of New Labs stock increases rapidly to a higher price and then remains at that price. All stocks quickly increase in value and then all but New Labs stock fall back to their original values. The price of New Labs stock remains unchanged. Question 25 (1 point) The David Burnie Corporation paid an annual dividend of $4.80 per share of common stock one day ago. Industry analysts forecast an annual growth rate of 6 percent forever. Given the risk level for this stock, a 12 percent discount rate is required. How much is this stock worth today? $40.00 $42.40 $80.00 $84.80 $100