Wall Street Week: Positive Signs from GE

Wall Street Week: Positive Signs from GE

Assessment

Interactive Video

Business

University

Hard

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The video discusses GE's strategic breakup into separate business lines, focusing on aviation, healthcare, and power. It highlights GE's past financial struggles and the impact of COVID-19 on its aviation sector. The breakup aims to allow each segment to operate independently, improving investor focus and financial performance. The video also explores the future of conglomerates and investor preferences for specialized business lines.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the annualized performance of the S&P 500 compared to GE over the last five years?

S&P 500: 20%, GE: -13%

S&P 500: 15%, GE: -10%

S&P 500: 10%, GE: -20%

S&P 500: 25%, GE: -5%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did COVID-19 affect GE's aviation business?

It had no significant impact on aviation.

It resulted in a merger with another company.

It caused the aviation business to halt, affecting cash flow.

It led to increased demand for aircraft engines.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which GE business line is planned to be spun off first?

Renewables

Healthcare

Power

Aviation

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the goal for GE's business lines in terms of credit ratings?

To merge credit ratings with another company

To downgrade credit ratings for tax benefits

To maintain current credit ratings

To achieve investment-grade credit ratings

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does GE's strategy for renewables differ from Siemens' approach?

GE plans to spin off renewables separately.

GE plans to sell renewables to Siemens.

GE plans to keep renewables within the main company.

GE plans to merge renewables with power.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected benefit for investors from GE's business breakup?

Investors will have less risk overall.

Investors will receive higher dividends.

Investors will have more voting rights.

Investors can choose specific business lines to invest in.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the potential free cash flow from GE's aviation business after recovery?

$2 billion

$6 billion

$8 billion

$4 billion