Determine whether stock prices are affected more by long-term or short-term performance. Provide an example of the effect that supports your claim.

Answers

Answer 1

Answer:

Short term can perform better.

Explanation:

In the market, the performance of the stock is a very important and critical barometer that determines the company's health. The stock price of a company helps the investors to evaluate the earnings and the growth of his in the future.

Both short term and the long term performances of the company impacts the stock performance of the company. The stock price can both rise and fall in a short term performance or a long term performance.

However, for a short term performance, things are very volatile and there can be a lot of fluctuations in the stock prices. While a long term performance is smooth and is not volatile.

For example,

Suppose ABC Company decides to give a $2 dividend for one share (DPS) next year and we estimate this to increase by 6 percent per year thereafter. Now let us assume that the required rate of the return on the ABC Company stock is 10%. So currently, ABC Company stock is at a trading value of $12 for one share. So using the formula, now we can find the intrinsic value of 1 share of ABC Company stock is:

[tex]$\frac{2.00}{0.10-0.05}$[/tex]

= $40

Thus, ABC company stock is $40 for one share and now it is trading at a value of 12 dollar.

Thus from the above example, we can say that in short term, the stock can  perform better.  


Related Questions

Which two of the four pieces of market data provided will be the most important toward properly vetting your backpack? Feature Preferences and Purchase Behavior Feature Preferences and Demographics Price Preference and Feature Preferences Purchase Behavior and Demographics Demographics and Price Preference

Answers

Answer:

Price Preference and Feature Preferences

Explanation:

The price preference and feature preferences data would be most important for properly vetting backpack purchases.

Price preference data would be required to compare and evaluate the most affordable brand of the backpack for making a purchase decision.

Feature preference data gives the understanding of various features, qualities, and attributes that different backpack's barnds are offering.

Therefore, this information is used for reviewing the backpack that would satisfy the customers in the most effective manner.  

Learn more about market data here:

https://brainly.com/question/6867891

Saine Corporation will pay a $3.25 per share dividend next year. The company pledges to increase its dividend by 5 percent per year, indefinitely. If you require a return of 10.5 percent on your investment, how much will you pay for the company’s stock today?

Answers

Answer:

$59.10

Explanation:

P0 = D1/r-g

P0 = $3.25 / 0.105 - 0.05

P0 = $3.25 / 0.055

P0 = $59.09090909090909

P0 = $59.10

Thus, the price currently we will like to pay for the stock is $59.10

he Lo Sun Corporation offers a bond with a current market price of $1,029.75, a coupon rate of 8 percent, and a yield to maturity of 7.52 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures

Answers

Answer:

8.5 years

Explanation:

The first point  that is worthy of note here is that the bond's interest is paid on a semiannual basis , hence, the number of semiannual periods before maturity is computed below using Excel nper function:

=nper(rate,pmt,-pv,fv)

rate=semiannual yield to maturity=7.52%*6/12=3.76%

pmt=semiannual coupon=face value*coupon rate*6/12=$1000*8%*6/12=40

pv=current market price=$1,029.75

fv=face value=$1000

=nper(3.76%,40,-1029.75,1000)

nper=17

number of years until maturity=17/2=8.5 years

suppose big d inc just paid a dividend of .50 per share it is expected dto increase its dividend by 2 per year if the market requires a return of 10 on assets of this risk how much wshould the stock be selling for

Answers

The question is incorrect, the correct question is stated below.

Suppose Big D, inc., just paid a dividend of $0.50 per share.  It is expected to increase its dividend by 2% per year. If the market requires a return of 10% on assets of this risk, how much should the stock be selling for?

Answer:

The stock should be selling for P0 = $6.375 rounded off to $6.38

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 * (1+g) is dividend expected for the next period g is the growth rate r is the required rate of return  

P0 = 0.5 * (1+0.02)  /  (0.10 - 0.02)

P0 = $6.375 rounded off to $6.38

Melissa knows that buying followers who do not exist may offer a quick and inexpensive way to meet short-term social media objectives. She also knows that the consequences likely will not be positive or productive. She must make a decision and that decision-making process is an example of

Answers

Answer: strategizing and ethical decision making

Explanation:

Based on the above scenario in the question, the decision-making process which Melissa will make is an example of strategizing and ethical decision making.

Ethical decision-making has to do evaluating different options which are available by an individual and choosing the best one which is considered to be good and ethical and won't be in about negative perception from others.

The following data were taken from Castle, Inc. Cost of goods sold $894,000 Inventory, end of year 78,000 Inventory, beginning of the year 92,000 What is (1) the inventory turnover ratio and (2) the number of days' sales in inventory for Castle Inc.

Answers

Answer:  Inventory turnover ratio =10.52

Days sale inventory =34.70 days

Explanation:

Inventory turnover ratio = Cost of goods sold / Average inventory  for same period

  First Calculating Average inventory, we have that

Beginning inventory+ Ending inventory  / 2

= ($92000 + $78000)/2 = $170,000 /2 = $85,000

Therefore,  Inventory turnover ratio = $894, 000 / $85,000 = 10.5178 rounded to 10.52

2) Days' sale inventory = 365 / Inventory turnover ratio

= 365 / 10.52 = 34.70 days

Answer:

1.  10.52 times

2. 34.70 days

Explanation:

(1) the inventory turnover ratio  

the inventory turnover ratio = Cost of goods sold ÷ Average Inventory

                                              = $894,000 ÷ ( $92,000 + $ 78,000)/2

                                              = 10.52 times

(2) the number of days' sales in inventory

number of days' sales in inventory = Average Inventory ÷ (Cost of goods sold/365)

                                                         = $85,000 ÷ ($894,000 /365)

                                                         = 34.70 days

Private markets fail to account for externalities because
a. the government cannot easily estimate the optimal quantity of pollution.
b. externalities don't occur in private markets.
c. decisionmakers in the market fail to include the costs of their behavior to third parties.
d. sellers include costs associated with externalities in the price of their product.

Answers

Answer: decision makers in the market fail to include the cost of their behavior to third parties

Explanation:

An externality simply means the effect of a particular economic decision that's taken by an individual or a firm on a third party or someone who isn't involved in the decision. This externality can either be positive or negative.

Private markets fail to account for externalities because decision makers in the market fail to include the cost of their behavior to third parties.

Externality can bring about market failure which has to do with not allocating resources efficiently in the market. This is one reason why government intervene in the market.

A company is preparing a bid on a government contract for 40 units of a certain product. The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours respectively. Approximately how long will it take to produce the last ten units?

Answers

Answer:

45.136 hours

Explanation:

learning rate = time needed to produce second unit / time needed to produce first unit = 8.8 hours / 10.4 hours = 0.8462 ≈ 85%.

time needed to produce the last 10 units = cumulative time needed to produce 40 units - cumulative time needed to produce 30 units

cumulative time needed to produce 40 units = 10.4 hour x 21.43 (cumulative improvement factor for 40 units, 85%) = 222.872 hourscumulative time needed to produce 30 units = 10.4 hour x 17.09 (cumulative improvement factor for 30 units, 85%) = 177.736 hours

time needed to produce the last 10 units = 222.872 hours - 177.736 hours = 45.136 hours

Problem solving is best defined as what?

Answers

Explanation: The clinic nurse understands that problem solving is best defined as: Identifying the gap between "what is" and "what should be." The risk manager wants to evaluate the reasons for an increased number of falls on the rehab unit.

Answer:

its c

Explanation

What effect will lowering the estimate for the allowance for doubtful accounts have on the company's net income and Blair's bonus

Answers

Question Completion:

Anton Blair is the manager of a medium-size company. A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year. Each December he estimates year-end financial figures in anticipation of the bonus he will receive. If the bonus is not as high as he would like, he offers several recommendations to the accountant for year-end adjustments. One of his favorite recommendations is for the controller to reduce the estimate of doubtful accounts.

Answer:

The effect of lowering the estimate for the allowance for doubtful accounts on the net income of the company is the increased net income resulting from reduced bad debt expense.

The effect of lowering the estimate for the allowance for doubtful accounts on Blair's bonus is the increased bonus since his bonus is based on the increased net income.

Explanation:

Blair's practice is unethical and selfish.  The accountant should never comply with such directive as it does not protect the interests of the stockholders.  Rather, she should explain the implications of such practice clearly to Blair.

A pet products company is developing a dog feeding system that senses when a dog is hungry and dispenses food into its bowl. This product is marketed toward owners with long, unpredictable workdays who want their pet to remain on a regular eating schedule. The company has the complementary assets necessary to fully develop the product. There are also high barriers to imitating the innovation and a very limited number of competitors. Based on this information, the company should:

Answers

Answer:

Develop and market the product alone.

Explanation:

Marketing can simply be said to be an the activity, institution set and also ways of creating, communicating, delivering, and exchanging offerings that customers importantly needs, partners, and society at large. Product, place, price, and promotion are used to meet the needs and wants of the final consumer. Developing and marketing the product alone involves creating the product and finding different ways/means to get the consumer aware of the product and ensuring the consumer accept and buys the product but it needs a lot of planning. Succeeding in developing and marketing the product will bring about a lot of profit and recognition for the company.

if a $10,000 par t bill has a discount quote and a 180-day maturity, what is the market price of the instrument

Answers

Answer:

$9,787.50

Explanation:

Assuming that discount rate = 4.25%

Discount rate quote =4.25%

Par value = $10,000  

Maturity = 180 days

Discount yield = (Par value - Price)/Par value * 360/ Days to maturity

0.0425=($10,000-Price)/$10,000 *360/180

0.0425=($10,000-Price)0.0002

0.0425 = $2 - 0.0002*PRICE

0.0002Price = $2 - 0.0425

0.0002Price = $1.9575

Price = 1.9575/0.0002

Price = $9,787.50

Hence, the market price of the instrument is $9,787.50

Now suppose that the school Durbin attended closed down before he could finish his education. In court, Durbin argues that this resulted in a failure of consideration: he did not get something of value in exchange for his promise to pay. Assuming that the government is a holder of the promissory note, will this argument likely be successful against it? Why or why not?

Answers

Answer:

No, Durbin owes the government. Durbin signed a promissory note with his bank and then defaulted, so the bank collected the money from the government and it became the holder in due course. Durbin did receive consideration, he received money that he paid to the school.

The document signed by Durbin complies with all the requirements necessary for a valid negotiable instrument:

It is an unconditional order to payIt involves an specific amount of moneyIt is written and signedThe note is made to the bearer

The facts are simple, Durbin signed a valid negotiable instrument and is liable for it. Probably Durbin's best shot is to sue the school and try to recover damages form it. Even if the school closed or declared bankruptcy, Durbin can still try to collect money form them.

According to the theorems of Dow Theory, the ideal market structure consists of a. an uptrend, top, downtrend and bottom b. a series of higher highs and higher lows c. a trend that is confirmed by the Advance / Decline Line d. Declining volume throughout a pattern

Answers

Answer:

According to the theorems of Dow Theory, the ideal market structure consists of

a. an uptrend, top, downtrend and bottom.

Explanation:

The theorems of Dow theory are the ideal market pictures of stock movement.  This Dow financial theory says that the market is in an upward trend or downward trend because of averages.  Understanding the Dow Theory enables traders to benefit from spotting and exploiting trends in the market.


Pharell works in the Government and Public Administration career cluster. Physical fitness and patriotism are very important to
him and he would like to travel to new places around the world. Which career pathway would best suit Pharell?
O Planning
O Governance
O Revenue and Taxation
O National Security

Answers

Answer:

O National Security

Explanation:

The Government and Public Administration cluster is composed of people who assist in enforcing the law. The cluster includes people in military workers,  municipal clerks, and service clerks,

National security concerns the ability of a country to cater to its citizenry's protection and defense. Pharell liking for physical fitness and patriotism will make him a perfect fit for protecting the citizens and the country.

Answer:

Sorry im late but theyre right

Explanation:

The Timberlake-Jackson Wardrobe Co. has 10.5 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,142.49, what is the YTM

Answers

Answer:

bébete la pastilla Randy jariel

You are applying for a firm permit using a fictitious name(s). Which name is least likely to be misleading

Answers

Answer:

Shelby County Accounting Services

Explanation:

Options includes "a. Ray Butler, Jr. & Arthur Anderson, CPAs, b. Shelby County Accounting Services, c. Ray Butler & Karen Condon, CPAs, d. Official Municipal Auditing Firm of Tennessee."

Shelby County Accounting Services is the least name out of the rest to be misleading. The name depict the companies purpose at once, meaning one can easily deduce what the company is offering. The name also shows the leave of professionalism in the company service, thus, making it the least likely to be misleading compared to the other option.

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one of the major aspects of business strategy for the newer networks is a(n) __________ than the traditional networks. a. narrower target market b. increased use of support activities to capture value c. broader target market

Answers

Answer:

a. narrower target market

Explanation:

The narrow target market is the market in which it targets to its core customers that means those customers who use the products mostly and also their spending power is high. It involves advantage like competitive strategies etc

Here in the given situation since the television industry is changed so for business strategy point of view the newer network would be narrower target market and the same is to be considered

hence, the option is a.

Do you think the government is concerned with human rights, worker production, or something altogether different?

Answers

Answer:

I think the government is not concerned with human rights nor worker production.

Explanation:

I dont think that the government is concerned with human rights since they aren't doing several anything to ensure the dignity of human life in several levels of government, from the most basic human right to the least important, we are for example not doing anything about the homeless people, or we are not ensuring free education for our youth, we as a country have a problem with studying college cause the educational system is one of the most expensives in the world, and caring for the worker production is also somethign that we are not doing cause for example not everyone has free healthcare like Canada or other countries have, so I do think the government is concerned about things that are completely different.

According to the CAPM, what is the expected market return given an expected return on a security of 14.6%, a stock beta of 1.2, and a risk free interest rate of 5.0%?

Answers

Answer:

the market return is 13%

Explanation:

The computation of the expected market return is shown below:

As we know that

Expected return = risk free rate + beta × (market return - risk free rate)

14.6% = 5% + 1.2 × (market return - 5%)

14.6% - 5% = 1.2  × (market return - 5%)

9.6% = 1.2 × (market return - 5%)

8% = (market return - 5%)

So, the market return is

= 8% + 5%

= 13%

hence, the market return is 13%

Under former CEO Kalanick, when Uber entered into a new market, it often disregarded local laws and allowed its drivers to begin work illegally. Which step in the ethical decision tree was Uber not considering

Answers

Answer:

Throughout the clarification portion elsewhere here, the definition of the concern is mentioned.

Explanation:

Was this lawful or legal? It is the component that Uber did not consider throughout the ethical decision tree. Because it bypassed local regulations as well as encouraged its drivers would unlawfully start work. Preferably, can Uber investigate whether or not something is legal? If it was not lawful, then that would have waited until the municipal authority had made it legal, then and only then would everyone has authorized the drivers could beg for jobs.

Examples of adjusting entries could include all of the following except: Group of answer choices Recording interest earned on bank account balances. Recording revenues earned by year end but not yet recorded. Recording the purchase of office supplies. Recording unpaid taxes. Recording the expiration of prepaid insurance.

Answers

Answer:

Recording the purchase of office supplies.

Explanation:

The adjusting entries are those entries which are required to record at the closing of the accounting period so that the balances of all the temporary accounts would be altered to match the accrual basis of accounting

In the given option, the third option is not covered as it is a simple business transaction that does not required any kind of adjustment

But all others required adjusting entries

Therefore the same is to be considered

A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of ________ years.

Answers

Answer: 4 years

Explanation:

A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of 4 years.

The duration of a zero coupon bond is the life of the bond. In this case, the life of the bod is given in the question as 4 years.

Therefore, the answer will be 4 years.

if somebody asks me if i need help on my work and i say " no ty " , is that rude?

Answers

Naw , you’re just being honest . (:

A firm obeys the least-cost rule by equating the ratios of marginal __________ product to the __________ price.

Answers

Answer:

Marginal product, factor

Explanation:

Least cost rule states that the level of production where there is least cost is when the ratio of labour marginal product to its price is equal to ratio of capital marginal product to its price.

The two factors that will be adjusted are labour and capital while maintaining a given level of output.

For example decision during a production cycle can be wether to hire staff on contract or permanent basis or wether to buy equipment or hire them.

The marginal cost and factor price of labour and capital needs to be equated to achieve least cost

What types of information do we disclose to others when forming a relationship? (site 1)

Answers

Answer:

self disclosure

Explanation:

A company borrowed $29,000 by signing a 90-day promissory note at 12%. The total interest due on the maturity date is: (Use 360 days a year.) Multiple Choice $72.50 $435.00 $870.00 $1,305.00 $3,480.00

Answers

Answer:

c. $870.00

Explanation:

Interest up to maturity date = $29,000 * 12% * 90/360

Interest up to maturity date = $29,000 * 0.12 * 90/360

Interest up to maturity date = $870

You are evaluating a stock return. You are expecting the stock return to change based on economy status. You are expecting that the probability of recession is 20%, normal is 30% and boom is 50%, and returns are -5%, 10%, and 13% respectively. What is the expected rate of return on this stock

Answers

Answer:

The expected rate of return on this stock  is 8.5%

Explanation:

The expected rate of return is shown below:

= Recession probability × return + normal probability × return + boom probability × return

= 20% × -5% + 30% × 10% + 50% × 13%

= -1% + 3% + 6.5%

= 8.5%

Hence, the expected rate of return on this stock  is 8.5%

We simply applied the above formula

The same is to be considered

The best measure of a firm's sustainable income is: Select one: a. income before extraordinary items b. income from continuing operations c. net income d. income before extraordinary item and change in accounting principle

Answers

Answer: b. income from continuing operations

Explanation:

The Sustainable income of a firm refers to the income that it derives from its operations in order to be able to fund the company. The best measure of such would therefore be income from continuing operations.

Income from Continuing Operations are so named because they come from the operations that the firm still operates and have not shutdown or sold off. The income that these operations make is what will keep the company sustained in future as they are still in operation.

A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000, the equipment costs $250,000, and $100,000 additional working capital is required. It is expected that the product will result in sales of $750,000 per year for 10 years, at which time the land can be sold for $400,000, the building for $350,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $475,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.

Answers

Answer:

The answer is "$ 70,245".

Explanation:

Annual value:  

By using the following formula, capital expenditure can be calculated:  

[tex]Investing \ capital = -LC- BC -EC -WC \\\\LC = \text{cost of land}\\ BC = \text{cost of construction}\\ EC = \text{cost of equipment} \\WC = \text{working capital}[/tex]  

In the above equation, substitute the respective values as follows:

[tex]capital = -\$ 300,000- \$ 600,000- \$ 250,000-\$ 100,000[/tex]

[tex]= -$ 1,250,000[/tex]

The anticipated annual revenues or sales are at $750,000.  

The following formula can be used to calculate the market value:  

[tex]=SL+SB+SE[/tex]

Where,

[tex]SL = \text{Land sale price}\\\\ SB = \text{Construction market price}\\\\ SE = \text{equipment sales price}[/tex]

Replace the respective values in the equation of market value as follows:  

[tex]Market \ value = 400,000+350,000+50,000[/tex]

                       [tex]=800,000[/tex]

Annual value calculation:  

Calculation of the annual value is as follows:

[tex]= 750,000-475,000-1,250,000(\frac{i(1+i)^n}{(1+i)^n-1}) +900,000\frac{i}{(1+i)^n-1}\\\\\text{ by solving the above value the answer is: }\\\\=70.245[/tex]

Costs are termed as the expenses or the price that the firm incurs from the process of manufacturing the raw material to the process of availing goods and services or the final finished product to the customer in the market at the prevailing and the affordable price.

The total annual value to get invested is "$ 70,245".

Calculation of the Capital Expensiture:

[tex]\text{Investing Capital}= -LC-BC-EC-WC[/tex]

LC= cost of land

BC= cost of construction

EC= cost of equipment

WC= working capital

[tex]\text{Investing Capital}= -LC-BC-EC-WC[/tex]

[tex]=-\$300000-\$600000-\$250000-\$100000[/tex]

=-1250000

The anticipated annual revenues or sales are at $750,000.  

Calculation of the market value:

Market value= [tex]SL+SB+SE[/tex]

SL = land sale price

SB= construction market price

SE= equipment sale price

Market price= [tex]SL+SB+SE[/tex]

=400000+350000+50000

= 800000

Calculation of Annual value:

[tex]750000-475000-1250000\frac{i(1+i)^{10} }{(1+i)^{10} -1} +900000\times\frac{i}{(1+i)^{10}-1 }[/tex]

After the calculation of the above formula or simplifying it,

The final answer is $ 70245.

To know more about the calculation of the annual value, refer to the link below:

https://brainly.com/question/6444704

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