Business, 28.10.2020 17:20 mdlemuslopez

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

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Answer from: jadensababe9151

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:

$\frac{2.00}{0.10-0.05}$

= $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.

Answer from: Quest

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

arrowright

Answer from: Quest

Answer$400,000 annual salary; /$50,000 annual expense account,/// a $100,000 nontaxable travel account,/// and $19,000 for entertainment;

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