Stock valuation comparison betwee General Materials and Standard Fixtures
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Two years ago, General Materials and Standard Fixtures' stock prices were the same. Over the first year, General Materials' stock price increased by 10 percent while Standard Fixtures' stock price decreased by 10 percent. Over the second year, General Materials' stock price decreased by 10 percent and Standard Fixtures' stock price increased by 10 percent. Do these two stocks have the same prices today? Explain.
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Solution Summary
The solution compares the price valuations between stocks of two different companies.
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Let the Price be 100 for the both
Taking the case of General Motors:
Price after year 1 ( Increase ...
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