On June 10,2016,Burton Builders,Inc. ,a publicly traded company,announced that it had been awarded a contract to build a football stadium at a contract price of $500 million.This contract would increase its projected revenues by 20% over the next three years.Which of the following statements is correct with regard to this announcement?

Question

Quizplus · Accepted Answer

The announcement of the contract is expected to have a positive impact on the company's future revenues, which may lead to an increase in investor confidence and demand for the company's stock. As a result, the market price of the company's stock is likely to increase. However, it is important to note that stock prices are affected by several factors and not solely dependent on contract announcements. The other choices are incorrect as they make assumptions that are not necessarily true.