Explain the effect on a company’s stock price today of each of the following events, other things held constant.

a. The interest rate on bonds falls.

b. Several companies in the same sector announce surprisingly higher sales.

c. A change in the tax law passed last year reduces this year’s profit.

d. The company unexpectedly announces that due to an accounting error, it must amend last year’s accounting statement and reduce last year’s reported profit by $5 million. It also announces that this change has no implications for future profits.