Analysis to analyze the desirability of investing in a stock


Question 1. If you were using trend analysis to analyze the desirability of investing in a stock, how would the growing degree of competition affect your analysis? (Consider the automobile industry, in particular.)

Question 2. How would the increasing globalization of a firm affect profitability analysis?

Question 3. How would the increasing globalization of a firm affect an analysis of the firm's risk/reward situation (diversification, foreign exchange, and political risk)?

Question 4. What are the weaknesses of a dividend growth evaluation model?

Question 5. Contrast the dividend growth evaluation model with the residual income valuation model.

Question 6. Why is historical basis the improper methodology for measuring the cost of capital in your capital budgeting analysis?

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Finance Basics: Analysis to analyze the desirability of investing in a stock
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