Response to the following questions:
1. Why may a firm's share price increase when the firm announces lower earnings?
2. The Clockwork Corporation would like to issue $2 million in new shares of stock. The President of Clockwork believes that if the company waits two weeks, they could get a better price for their shares. The Chair of the board of directors disputes this. She says that because markets are price efficient, there is no "timing" possible on the stock issue and Clockwork should issue the shares when they need the funds, and not worry about "timing." Who is right?