What Happened to FINOVA's Share Price When It Announced a Write-Down

question 271

Multiple Choice

What happened to FINOVA's share price when it announced a write-down of a loan and the retirement of Sam Eichefeld as CEO?

• A) The share price dropped $0.72
• B) The share price dropped but rebounded before the end of the day
• C) The share price dropped from $32 to $19.98 in one day
• D) None of the above

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Definitions:

Padding

The practice of inflating estimates or financial figures to create a buffer for unexpected costs or to create the appearance of greater value.

Static Budget

A fixed budget that does not change or adjust to variations in business activity levels, often used for control purposes in stable environment operations.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level.

Direct Labor

The wages or salaries paid to employees who are directly involved in producing goods or providing services.