The following is an actual headline that was recently reportedin the media about the New Zealand company Sky TV:
“Sky TV’s profit dropped 20.9 per cent in the year to the end ofJune. The pay TV company released its full-year results today,which showed a net profit of more than $116.3 million, down from$147.1 million the previous year.”
(a). Discuss the key findings of the Ball and Brown(1968) study and explain how the above earnings announcement mightaffect Sky TV’s share price.
