Edmund Corporation recently made a large investment to upgrade itstechnology. Although these improvements won’t have much of an impacton performance in the short run, they are expected to reduce future costssignificantly. What impact will this investment have on Edmund’s earningsper share this year? What impact might this investment have on thecompany’s intrinsic value and stock price?

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Recent Trends and Balance Sheet

Earlier, the balance sheet was only known for recording the assets and liabilities of the organization, but now the scope, framework, and trend of preparing a balance sheet have changed.