Reaction of Stock Market & Calculations and Analysis of Residuals

1. Overview of the announcement and expected impact • Introduce the announcement, give a succinct summary of the key financial and, if applicable, non-financial elements. • Provide a justified expectation of the impact of the announcement on your company’s share price (up or down, good news/ bad news etc). Be sure to discuss what YOU THOUGHT should happen based on the announcement and not a rationalisation of what did happen 2. a discussion and analysis of the actual stock market reaction and calculation of residuals • What actually happened around the date the announcement was released to the share price of your company and its competitors. • Use your residual calculations to support your observations. • Explain what the residual graph is presenting to the audience. • This section will include the presentation of your cumulative residual graphs with a discussion on their importance and usefulness. • If not what was expected, what are some reasons for the difference? • Does the industry your company and its competitors operate affect the residual results or expectations? • You can include information from company announcements, reports, news articles, graphs etc. to support your discussion. • Any graphs that appear within the body of the report require appropriate formatting and labels. • You do not need to include tables of formulas from Excel in your written report.