Suppose it is March 2020 and you are meeting up with an old friend from university. He
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Question:
The retail clothing sector has been going down for some time. Consumers all around the world have shifted to online shopping. He expects this trend will continue, and that traditional retail firms will continue to lose value. He tells you he has a short position on The Gap (NYSE: GPS), a large American clothing retailer. From March 2015 to February 2020.
The Gap went from a price of $34.25 per share to $6.78 per share, or a decrease of over 80% (see figure below). What else (if anything)does he need to tell you in order to convince you that The Gap is overpriced?
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Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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