For a company like Samsung, how can ethics affect the share price of the company’s common stock?
2. Your classmate Zarren Duffet is a firm believer in book values. According to Zarren, book values can be supported with documentation and therefore are not subject to argument or misstatement. You recently began working as a financial analyst for HSBC, and your managers have all told you that market values for assets are more informative and useful than book values. In fact one of your managers recently said that anyone who thinks in the realm of book values is completely wasting their time. Zarren counters by emphasizing that book values are reliable, with no subjectivity. You’re about to make a presentation to a major client – how will you explain which of these is more important, historical book values or market values?
