Question 1: Publicly Announced Earnings
Research indicates that 80% of a company's stock price reflects the present value of cash flows expected to occur at least five or more years into the future. If this is correct, then why is there so much emphasis on publicly announced current quarterly earnings results?
Question 2: Who is Warren Buffett? What do you think he has to say about the EMH?
Question 3: What types of investors are likely to be most interested in owning preferred stocks? Please explain
Question 4: Management Behavior and Interest Rates
Can you explain how management behavior (i.e., risk-taking within the firm) is affected by changing interest rates? In other words, I think it is relatively straight forward it understand how interest rates impact financial assets like stocks and bonds. They also impact management courses of action, and I think this is often overlooked.
Question 6: What will be nominal rate of return on a preferred stock with a $100 par value, a stated dividend of 8 percent of par, and a current market price of (a) 60, (b) 80, (C) 100, (d) 140
Question 7: Martell Mining's Company's are reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year so its cast are raising. As a result, the company's earnings and dividends are declining at the constants rate of 5 percent per year, If Do = $5, and rs = 15%, What is the value of Martel stock?