Discussion:
1. Risk and Return
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.
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.
2. Financial Options and Weighted Average Cost of Capital (WACC)
Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.
Create a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.