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What would happen to the company stock price

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Reference no: EM132932263

Problem 1: The CEO of Fly Corporation decides to change an accounting method at the end of the current year. The change results in reported profits increasing by 5%, but the company's cash flows are not changed. If capital markets are efficient, then what would happen to the company stock price? Justify your answer with logical arguments

Reference no: EM132932263

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