Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 12

Find an event reported in today's business press that is likely to have an important effect on the cash flows for a given firm. Use Yahoo's finance Web site to produce a chart of the company's stock price around the time or day of the announcement of the event (http://www.finance.yahoo.com). Explain why the market reacted the way it did.