On a Particular Day,a Mining Company Reveals That,due to New

question 28

Multiple Choice

On a particular day,a mining company reveals that,due to new extraction technology,the extractable yield from several of its nickel/lead mines has risen by 15%.Which of the following is the LEAST likely consequence of such an announcement?

• A)The price of the stock would rise due to the pressure to buy
• B)Investors would determine that the estimates of the firm's value on the date prior to the announcement were too high.
• C)Investors would increase their forecast of future cash flows in that firm.
• D)Investors would revise their estimates of the net present value (NPV)of the firm.

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Definitions:

Fluid Medium

A liquid substance in which other materials are dissolved or suspended, often used in scientific and medical contexts.

Sperm

Male reproductive cells or gametes involved in sexual reproduction.

Testes

Testes are the male reproductive glands that produce sperm and the hormone testosterone.

Scrotum

The pouch of skin containing the testicles in male mammals.