Question

b. Many celebrated economists have likened the recent novel covid-19 pandemic to “the great depression” of the 1930s. One of the havocs this pandemic has caused is the general decline in the value of most stocks. As a student of corporate finance, what cardinal concept in finance will you attribute this

to and what are the critical issues involve in this concept.

Answer 1

The novel coronavirus has infected millions and killed hundreds of thousands of people around the world since it first emerged in China last December. It has compelled many governments to lock down their populations to a degree unimaginable until recently. It is causing the most brutal recession in living memory. At The Economist, we are analysing every aspect of the pandemic—from the science to its political, economic and social consequences—with rigour and a global perspective.