Toshiba's Stock Plunges on Nuclear Costs

Toshiba's acquisition of Westinghouse in 2006 aimed to capitalize on nuclear energy. However, the Fukushima disaster and cheap natural gas led to financial struggles. Cost overruns and delays in U.S. projects, compounded by miscommunication with CBI, resulted in a significant write-down. Investors are concerned about Toshiba's financial health and international reputation. The company faces challenges in securing capital, potentially diluting shares, and impacting market confidence.

What major event in 2011 significantly impacted the nuclear industry and Toshiba's plans?

• The Chernobyl disaster

• The Deepwater Horizon oil spill

• The Fukushima disaster

• The Three Mile Island incident

What was the main issue between Toshiba and CBI that led to financial problems?

• Legal disputes over reactor designs

• Competition in international markets

• Miscommunication about cost overruns

• Disagreement over technology patents

How did Toshiba's financial issues affect their international business prospects?

• It led to increased sales

• It made financing more difficult

• It had no impact

• It improved their reputation

What is a potential consequence for Toshiba if the write-down is substantial?

• They will have to sell preferred stock

• They will gain more investors

• They will reduce their debt

• They will increase their market cap

Which bank is mentioned as a potential source of capital for Toshiba?

• Bank of America

• HSBC

• Deutsche Bank

• Mitsui Sumitomo