How do investors account for risk when determining an asset

Assignment Help Financial Accounting
Reference no: EM133000639

Tesla's stock price was up about 5% in Monday's trading after announcing the previous week that the automaker had delivered a record number of its Model 3 sedan and its Model Y SUV in the first quarter of 2021. Production of the Tesla Models S and X were halted with no explanation during the first quarter. Most experts attribute the lack of production of those models to the computer chip shortages plaguing many assembly lines.

Tesla has been down about 20% from its high of $883.09 posted earlier this year. The Wall Street darling started trending lower after releasing fourth quarter 2020 results that fell below analysts' forecasts. However, the first quarter 2021 results changed some minds on Wall Street with many analysts upgrading their recommendations on the firm's stock. Tesla closed just below $700 a share on April 5, 2021.

Problem 1: Why did Tesla's stock price increase on Monday April 5, 2021?

Problem 2: How do investors account for risk when determining an asset's value?

Problem 3: How does higher expected growth affect a stock's value?

Reference no: EM133000639

Questions Cloud

What are total budgeted receipts for may from credit sales : Customers paying in the month after the sale are allowed a 10% discount. What are the total budgeted receipts for May from credit sales?
What are the budgeted sales receipts from customers : What are the budgeted sales receipts from customers for next month? The accounts receivables at the beginning of the month is P100,000.
Discuss the auditor responsibilities for subsequent events : Discuss the auditor's responsibilities for subsequent events of the contract for the year ended 31 December 2019
Determining the selling price for products : Which type of pricing (cost-plus or target costing) that you feel would be more accurate in determining the selling price for products as it relates
How do investors account for risk when determining an asset : How do investors account for risk when determining an asset's value? Tesla's stock price was up about 5% in Monday's trading after announcing.
Has abc ltd engaged in irresponsible lending : Assume that the NCCP Act apply to Sleepy's loan. Has ABC Ltd engaged in "irresponsible lending". Whether ABC Ltd has engaged in misleading and deceptive conduct
What net change in owner equity occurred : The account balances are for Carl Nicholson, Certified Public Accountant. What net change in owner's equity occurred during the month of April?
What is the value of a firm : A firm's weighted average cost of capital during the first five years is 15% and then drops to 9% beyond the fifth year. What is the value of a firm
What amount of total assets after transactions recorded : Maurice Dickey is a painting contractor who specializes in painting commercial. What is the amount of total assets after all transactions have been recorded?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd