Suppose the broad stock market falls 20% in a year and Home Depots stock price falls by 10%.

Price per share	Shares (million)	BV (million)
114.75	1,307	9,322

a. Will the companys market value added rise or fall?

• Rise

• Fall

b. Should this change affect our assessment of the performance of Home Depots managers?

• Yes

• No

c. Would you feel differently about Home Depots managers if the stock market were unchanged and Home Depots stock fell by 10%?

• Yes

• No