General Electric Co.’s stock has tumbled the most it has seen in six years. This is due to a deteriorating outlook stoked by fears that the company will cut its dividend for only the second time since the Great Depression.
1.What is causing the drop, according to Jeff Windau, an analyst at Edward Jones?
2. On October 20, what did GE cut its forecasted earnings from and to? What had analysts estimated prior to this announcement?
3. What is in weak demand for some of GE’s signature businesses?
Black, T. and B. Case. (2017) GE Plunges the Most in Six Years. Bloomberg.com (Retrievable online at https://www.bloomberg.com/news/articles/2017-10-23/ge-sinks-most-in-six-years-as-wall-street-sees-dividend-in-peril)