Which of the following would increase the price of a firm's stock?

Question

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The approval of a new patent indicates that the firm has a new product or technology that can generate more revenue, which increases the firm's value and its stock price.

Answer: B and E would decrease the price of a firm's stock. An emergence of a new competitor would decrease the firm's market share, hurting its revenue and stock price, and the threat of a major lawsuit against the firm can lead to financial losses and damage to the firm's reputation, causing a decline in its stock price.

Answer: A and D may have indirect or mixed effects on the stock price. A decrease in demand for the firm's products can reduce revenue and earnings, causing a decline in the stock price. However, if the market considers it a short-term phenomenon, the impact on the stock price may not be significant. An increase in the interest rate can affect the overall market and the firm's borrowing costs, which may affect its profitability and stock price, but the effect can vary depending on the firm's specific circumstances.

Which of the Following Would Increase the Price of a Firm's