Hershey Corporation is a famous chocolate manufacturing concern, the trading of the company's shares takes place in the New York Stock Exchange (NYSE) under the ticker symbol HSY. The closing price of the HSY on 3rd February of 2020 was $30 for a share. The Hershey Corporation had made a surprise announcement after the closure of the stock market on 3rd February that the company has obtained a major new client. This announcement has created a situation where the per share value of HSY will open above $30 and will result a greater valuation even if the stocks are yet to be traded.
From the given scenario, Mary has to select the best principle of finance that suits the scenario and its outcome, help her in this scenario?
1 Conflict of interest leads to agency issues
2 .The time value of money
3. Flow of cash is what matters
4. The market prices are generally correct

Answer rating: 100% (QA)

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