Which One of the Following Announcements Is Most Apt to Cause

question 31

Multiple Choice

Which one of the following announcements is most apt to cause the price of a firm's stock to increase?

• A)The firm met its quarterly earnings forecast.
• B)An unpopular CEO unexpectedly announced he is resigning effective immediately.
• C)A firm officially confirmed the rumors that it is merging with a competitor.
• D)The firm just lowered its projected earnings per share for next year.
• E)Analysts are expected to lower the firm's credit rating on its debt.

---

Definitions:

ITQs

Individual Transferable Quotas, a common market-based tool used to regulate fishing efforts and conserve fish stocks by allocating specific catch limits to fishers.

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and significant role in commercial fishing and ecological balance.

Forestry Companies

Businesses involved in the cultivation, maintenance, and harvesting of forests for commercial, recreational, or conservation purposes.

Growth Pattern

The specific way in which an economic entity or biological organism grows over time, often analyzed to predict future developments.