Your company plans to relocate part of its offices outside Paris and to maintain, as much as
Fantastic news! We've Found the answer you've been seeking!
Question:
Your company plans to relocate part of its offices outside Paris and to maintain, as much as possible, part of its employees’ activity in teleworking for at least 5 years. This decision is expected to reduce operating costs by 200,000 euros per year.
If investors were not expecting such a change, what would be the most likely effect on your company's share price once this announcement is made, given that your company has 50,000 shares outstanding, no debt, and a 10% cost of equity of capital?
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date: