Answer:
The answer is: C) Reduce the present value and the price of the corporation´s stock.
Explanation:
The price of any company is determined mostly on its estimated future earnings calculated through a cash flow analysis. In this case consumers and investors were expecting the smartphone to be a hit. So they estimated the future sales in XYZ levels, with profits according to that XYZ sales. Thus the stock price was probably high due to the future sales numbers and the projected earnings for the corporation.
When the new smartphone disappoints, sales will then be expected to be lower than XYZ, so the estimated future earnings will also be lower. Therefore the stock price will fall and adjust to the new lower sales and earnings levels expected for the corporation.
