Discussion: "Risk and Return"
Please respond to the following:
• From the e-Activity, determine whether stock prices are affected more by long-term or short-term performance. Provide one (1) example of the effect that supports your claim.
• From the scenario, value a share of TFC's stock using a growth model method and compare that value to the current trading price of a share of TFC. Determine whether the stock is undervalued or overvalued. Provide a rationale for your response.
Please also respond using a "real example" to three of the following (try to post early in the week, so we can have a discussion DURING the week):
1. Describe the relationship between cash and cash flows.
2. Describe relationship between profit and cash flows.
3. How do business decisions affect cash flows?
4. How do you use a firm's balance sheets and income statements to calculate the cash flows generated by the firm's operating, investing and financing activities?
5. How do you prepare and interpret a cash-flow statement?