Concept of inefficient markets and corporate decisions

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Reference no: EM1351072

Consider the comments of Brian Walker, the president of Herman-Miller North America, who was quoted in the chapter as having said: 'For dot.coms, it appears that the market has implicitly capitalized a lot of those costs. The market views their negative earnings as investments in the future. It's more difficult for a traditional Old Economy company trying to participate in the New Economy, because when it affects my earnings, it's more difficult for Wall Street to say, 'We'll give you a break on this.' Discuss Walker's remark in the context of the concept of Inefficient Markets and Corporate Decisions.

Reference no: EM1351072

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