Question: Pacific Ltd is a medium sized publicly listed manufacturer that designs and produces metal roofs. Its reported earnings per share for 2020 was $12.75 a share, versus $13.00 EPS in 2019. The 2020 earnings announcement was publicly announced 9 AM on Feb. 28, 2021. For 2020, financial analysts had predicted $11.50 earnings a share. (a) If you have no other information, would you expect a change in the price of Pacific's common stock on Feb 28th, 2021? If so, in what direction (increase or decrease) and why? Explain your answer with explicit reference to relevant terms and points from the scenario, and identify any assumptions you have made. (b) If the deviation of actual earnings from expected earnings described in (a) is completely due to an increase in come because of a change in amortization policy, would you expect the ERC to be greater than 1, 1, 0, or less than 0? Explain your answer. (c) If the deviation of actual earnings from expected earnings described in (a) is completely due to an increase in income from improving manufacturing efficiency, would you expect the ERC to be greater than 1, 1, 0, or less than 0? Explain your answer.