Reference no: EM133045439

Question 1. At any point in time, the market value of a firm's common stock depends on many factors.

Select a public company and look up the company's stock's performance over the last year. Discuss which company you selected and its performance.

What do you think are the market forces that might have influenced the value of the company's stock at its peaks and valleys?

What do your findings indicate about your selected company's financial health?

Question 2. Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return shareholders require so that they can decide how to meet those expectations.

Discuss how they each influence financial decisions regarding risk and return:

The capital asset pricing model (CAPM)

The constant-growth model

Compute forward-looking expected return and risk

Risk premiums

Question 3. Estimating cash flows isn't difficult, but it is complicated, as there are a lot of little details to keep track of. Having a systematic approach to handling and arranging details is key to successful finance management and advancing organizational goals.

Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.

What would your process be to ensure that all related financial details are allocated for and tracked so as to assist in making sound business decisions?