Will the company market value added rise or fall

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Home Depot’s common stock closed fiscal 2014 at a price of $114.75 per share. There were 1,307 million shares outstanding, At the end of 2014, the book value of Home Depot’s equity was $9,322 million. Suppose the broad stock market falls 20% in a year and Home Depot’s stock price falls by 10%. 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. Calculate the market value added, if the stock market were unchanged and Home Depot’s stock fell by 10%. (Enter your answer in millions. Round intermediate calculations and final answer to the nearest whole number.)

Reference no: EM131864533

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