CORPORATE FINANCE--CONNECT ACCESS CARD
CORPORATE FINANCE--CONNECT ACCESS CARD
12th Edition
ISBN: 9781264331062
Author: Ross
Publisher: MCG CUSTOM
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Chapter 10, Problem 2CQ

Investment Selection Given that Sears was down by about 61 percent for 2017, why did some investors hold the stock? Why didn’t they sell out before the price declined so sharply?

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At the April 2015 stock price of $14.59, the market values zulily at $1.86B. This is a big drop from the February 2014 high of $68.39 a share price. Describezulily’s principle assets. Does a $1.86B valuation seem appropriate, given your description of the company’s assets? Justify your answer.
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CORPORATE FINANCE--CONNECT ACCESS CARD

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