Chapter 8 8.8 This question is related to AT&T’s venture into cable.

Chapter 8 8.8 This question is related to AT&T’s venture into cable. On Wednesday June

24, 1998, AT&T announced its intent to acquire TCI. The assets obtained in the acquisition helped create AT&T Broadband. Three years later, on Monday July 9, 2001, Comcast announced its intent to purchase the Broadband assets from AT&T. 

A. Given the following

data, what was AT&T’s abnormal return at the announcement of the TCI acquisition? (Weston 214) Date AT&T Stock Price S&P 500 Index 6/23/1998 $32.2556 1119.49 6/24/1998 $29.6045 1132.88 

B. Given the following data, what was AT&T’s abnormal return at the announcement

of the Comcast bid? (Weston 214) Date AT&T Stock Price S&P 500 Index 7/6/2001 $16.6846 1190.59 7/9/2001 $18.6604 1198.78 

C. Do you think the results in Parts A and B are related? (Weston 214)