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Suppose Home Depot's Stock price falls by 10% in a given year. a. Will the firm's market value added increase or decrease? Increase Decrease
Suppose Home Depot's Stock price falls by 10% in a given year. a. Will the firm's market value added increase or decrease? Increase Decrease b. How will this change affect your assessment of the performance of the firm's management? Will downgrade your evaluation of the success of firm management. Will upgrade your evaluation of the success of firm management. c. Now suppose that in the same year, the broad stock market fell by 20%, a lot more than the decline in Home Depot's stock. Did the Home Depot able to manage the recession better than most other firms? c. Now suppose that in the same year, the broad stock market fell by 20%, a lot more than the decline in Home Depot's stock. Did the Home Depot able to manage the recession better than most other firms? Yes ONO d. Can we relate market value added to our evaluation of firm's performance considering broad market performance as a benchmark? Yes ONO
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