What is the likely effect of each of the following events on the stock price of a company? Explain your answers.

a. The company announces that although profits are low this year, it has discovered a new line of business that will generate high profits next year.

b. The company announces that although it had high profits this year, those profits will be less than had been previously announced.

c. Other companies in the same industry announce that sales are unexpectedly slow this year.

d. The company announces that it is on track to meet its previously forecast profit target.