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Suppose the broad stock market falls 20% in a year and Home Depot's stock price falls by 10%. | Price per share 114.75 Shares (million)
Suppose the broad stock market falls 20% in a year and Home Depot's stock price falls by 10%. | Price per share 114.75 Shares (million) | BV (million) | 1,307 9,322 a. Will the company's market value added rise or fall? Rise Fall b. Should this change affect our assessment of the performance of Home Depot's managers? Yes No c. Would you feel differently about Home Depot's managers if the stock market were unchanged and Home Depot's stock fell by 10%? Yes
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