governance-question
- You make investment decisions. After you have done your financial analysis and screening of company XYZ, but before investing in its corporate stock, you decide to examine issues around the firm’s governance. You discover that XYZ is completely compliant with the CalPers Test for Board Independence.
Would you now have any concerns about the board, or has that “box been checked”? If you have concerns, what would they be and how would you investigate them? All information necessary to answer this question is in the class PowerPoint. (2pts)
2.Consider Alphabet (parent of Google). If “search”, the core Google business, is the high ROA/ROE business, how does or does not Alphabet’s overall corporate strategy of diversification compare to the R P Sherer story discussed in class? You’ll need a sense of Google’s product strategy and to think of how it is or is not similar to the R P Sherer product history. (2 pts)
