Consider the following firms: Net Income this Year Stock price at beginning of year Stock price at end of year Firm A $ 10,000,000 $ 20 $ 10 Firm B $ 8,000,000 $ 10 $ 20 a) The manager of firm A is doing a better job than B b) The manager of firm B is doing a better job than A c) Neither manager is doing a good job d) Both managers are doing a good job

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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.Consider the following firms: Net Income this Year Stock price at beginning of year Stock price at end of year Firm A $ 10,000,000 $ 20 $ 10 Firm B $ 8,000,000 $ 10 $ 20

a) The manager of firm A is doing a better job than B

b) The manager of firm B is doing a better job than A

c) Neither manager is doing a good job

d) Both managers are doing a good job

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