Why Is Rolls-Royce Stock Down as Profit Tops Estimates?

Why Is Rolls-Royce Stock Down as Profit Tops Estimates?

Assessment

Interactive Video

Business, Social Studies

University

Hard

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Rolls Royce reported a record loss due to accounting issues related to currency exchanges, despite strong underlying earnings. The stock dropped due to a lack of excitement about future prospects. The company plans to focus on product portfolio reviews and potential asset sales to improve its position.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the underlying earnings figure for Rolls Royce that beat estimates?

£618 million

£813 million

£4.6 billion

£38 billion

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason for the record loss reported by Rolls Royce?

High employee turnover

Accounting issues and currency exchanges

Increased production costs

Decline in engine sales

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does Rolls Royce plan to offset the losses caused by currency fluctuations?

By reducing workforce

Through their hedge book

By expanding into new markets

By increasing engine prices

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the reasons for the lack of excitement in Rolls Royce shares?

High dividend payouts

Lack of aggressive asset disposal

Aggressive asset acquisition

Strong competition

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategic focus is Rolls Royce considering for the future?

Expanding into new industries

Raising capital through new stock issuance

Increasing workforce

Reviewing and possibly selling parts of the business