1.      During the early days of the Internet, most dot-coms were driven by reve

1. During the early days of the Internet most dot-coms were driven by revenues rather than profits. A large number were even driven by hits to their site rather than revenues. This all changed in early 0 however when the prices of unprofitable dot-com stocks plummeted on Wall Street. Most analysts have attributed this to a return to rationality with investors focusing once again on fundamentals like earnings growth. ● Does this mean that during the 1990s dot-coms that focused on hits rather than revenues or profits had bad business plans? Explain. (Chapter13- Problem 14) 2. During the dot-com era mergers among some brokerage houses resulted in the acquiring firm paying a premium on the order of $100 for each of the acquired firms customers. ● Is there a business rationale for such a strategy? ● Do you think these circumstances are met in the brokerage business?

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