There is a lot of emphasis on

There is a lot of emphasis on performing as expected in the next quarter or several reporting periods. What percentage of the underlying value of a stock is dependent on short-term earnings and how much is dependent on long-term growth? How does this effect strategic decisions?

Good results boost stock prices. Unfortunately, this door swings both ways, poor performance can drive prices down. Explain the four drivers of stock prices then use them to explain the reasons for the large swings experienced in stock prices. Explain how management can make a difference to impact their results, ultimately effecting the stock price. (See Section 7-9 and Figure 7-9 of the textbook.)

Consider the stocks Chipotle Mexican Grill (CMG) and Tesla (TSLA) that garner a lot of interest in both the world and the financial markets. Do you think that they might have a large gap between their intrinsic value and the current market price? Keep in mind you are not being asked for a calculation, but identify the characteristics which might cause that gap to occur.

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized