Question
12. Lendex Electronics (LE) had a great deal of turnover of top management for several years and was not followed by analysts during this period
12. Lendex Electronics (LE) had a great deal of turnover of top management for several years and was not followed by analysts during this period of turmoil. Because the company's performance has been improving steadily for the past three years, technology analyst steve kent recently reinitiated coverage of LE. A meeting with management confirmed Kent's positive impression of LE's operations and strategic plan. Kent decides LE merits further analysis. Careful examination of LE's financial statements revealed that the company had negative other comprehensive income from changes in the value of available-for-sale securities in each of the past five years. How, if at all, should this observation about LE's other comprehensive income affect the figures that Kent uses for the company's ROE and book value for those years?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started