Marion Manufacturing, a steel company, announces that it will be taking a major restructuring charge that will

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Marion Manufacturing, a steel company, announces that it will be taking a major restructuring charge that will lower earnings this year by

$500 million. Assume that the charge is not tax deductible and has no effects on operations.

a. What will the effect of this charge be on the value of the firm?

b. When the firm announces the charge, what effect would you expect it to have on the stock price? Is your answer consistent with your response to question (a)?

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Investment Valuation Tools And Techniques For Determining The Value Of Any Asset

ISBN: 9781118011522

3rd Edition

Authors: Aswath Damodaran

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Question Posted: May 24, 2024 02:00 AM

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Marion Manufacturing, a steel company, announces that it will be taking a major restructuring charge that will

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Investment Valuation Tools And Techniques For Determining The Value Of Any Asset

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