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On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO...
On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Date Market Return (%) Company Return (%) Nov 7 1.7 1.3 Nov 8 1.5 1.3 Nov 9 -1.4 -0.2 Nov 10 −0.6 −0.5 Nov 11 2.5 1.0 Nov 14 −1.3 3.0 Nov 15 0.1 0.1 Nov 16 0.9 1.9 Nov 17 1.4 0.8 Nov 18 −1.4 0.0 Nov 21 1.5 0.2 Assume the company has an expected return equal to the market return. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. ) What is the percentage cumulative abnormal return (CAR) on Day "-2", which is relative to the announcement date of the event?
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jeff jeffy answered 1 year agoRelated Solutions
On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO...
On November 14, Thorogood Enterprises announced that the public
and acrimonious battle with its current CEO had been resolved.
Under the terms of the deal, the CEO would step down from his
position immediately. In exchange, he was given a generous
severance package. Given the information below, calculate the
cumulative abnormal return (CAR) around this announcement. Assume
the company has an expected return equal to the market return.
(A negative value should be indicated by a minus sign.
Leave no...
On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO...
On November 14, Thorogood Enterprises announced that the public
and acrimonious battle with its current CEO had been resolved.
Under the terms of the deal, the CEO would step down from his
position immediately. In exchange, he was given a generous
severance package. Given the information below, calculate the
cumulative abnormal return (CAR) around this announcement. Assume
the company has an expected return equal to the market return.
(A negative value should be indicated by a minus sign.
Leave no...
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