Business-functions/strategy and-corporate finance

Read the following articles for question 1: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/do-fundamentalsor-emotionsdrive-the-stock-market After reading the above articles, who do you think is driving markets – short-term or long-term investors?…

Read the following articles for question 1:

https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/do-fundamentalsor-emotionsdrive-the-stock-market

After reading the above articles, who do you think is driving markets – short-term or long-term investors?

Question 2:

Please read the following article for question 2:

https://www.thebalance.com/the-difference-between-a-stock-s-value-and-price-3140860

Question 2: You might have heard that the goal of financial management is to maximize the current value (price) per share of the existing stock of a company. In addition, it is widely know that, “by maximizing the value of the stock, the value of the company will be maximized as well.” Based on your answer to the Question 1, what is your opinion on the sentence highlighted above? Do you agree (or disagree) and why?

Sample Solution
. Market Approach – It is a strategy for decide examination estimation of an advantage, in light of the selling cost of a comparative thing. It is in reality a business valuation strategy that can be utilized to compute the estimation of property or can likewise be utilized as a valuation procedure for a firmly held business. It includes open organization practically identical and point of reference exchange. Probably the most usually utilized products for examination are as per the following. • Price to Earnings • Enterprise esteem/EBITDA • Return on Equity • Return on Asset • Price to Book esteem 3. Resource Approach – An advantage based methodology is sort of business valuation that centers around an organization’s net resource esteem or the honest assessment, of its complete resources short its liabilities to figure out what it would cost to reproduce the business it is abstract with respect to which of the organization’s benefit and liabilities to remember for the valuation and how to gauge the value of each. Aside from the previously mentioned valuation that helps in deciding the estimation of the stock so as to help the financial specialist in settling on the venture choices, there are a couple of physiological variables that may significantly impact the speculators conduct or choice regardless of the genuine securities exchange circumstance or the benefit esteem. Physiological Factors-It implies Thoughts, Feelings, and others subjective attributes that impact the conduct, disposition, and elements of the people mind. The physiological variables that portray the individual financial specialist conduct will rely upon the individual’s character and his trademark. The underneath referenced are hardly any physiological variables that may impact the financial specialist conduct a. Pomposity b. Good faith c. Dread of Loss d. Hurt Behavior>GET ANSWER Let’s block ads! (Why?)

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