GE's share price dropped more than 10% last week. What are implications?
a) Its market value declined
b) Its book value declined
c) If it issues shares at the new price, this will increase book value less than had it issued the same number of shares two weeks ago
d) If it makes the same profit this quarter, then ROE will be higher than last quarter
e) If it makes the same profit this quarter, then ROE will be lower than last quarter
Answer:
a) Its market value declined
c) If it issues shares at the new price, this will increase book value less than had it issued the same number of shares two weeks ago
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