E-ACTIVITY- Use the Internet to research instances where a company's stock prices are affected more by long-term or short-term performance. Be prepared to discuss.
SCENARIO
https://blackboard.strayer.edu/bbcswebdav/institution/FIN/534/1138/Week4/Scenario/story.html
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 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.