Stock Price Essay Example for Free

origination Price Essay1. If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met? 2. If most investors expect the same cash flows from Companies A and B but are more footsure that Company As cash flow will be close to their expected value, which should adjudge the higher stock price? Explain. 3. When is a stock said to be in equilibrium? At any given time, would you guess that most stocks are in equilibrium as you defined it? Explain. 4. job three completely honest individuals gave you their estimates of Stock Xs intrinsic value. One is your current girl or boyfriend, the second is a professional security analyst with an excellent reputation on seawall Street, and the third is Company Xs CFO. If the three estimates differ, which one would you have the most confidence in? Why? 5. What are some actions stockholders tummy take to ensure that managements and stockholders interest can be aligned? 6. The president of Southern Semiconductor Corporation (SSC) do this statement in the accompanys annual report SSCs primary goal is to increase the value of our universal stockholders equity. later(prenominal) in the report, the following announcements were made (a) The company is spending $500 million to open a brisk plant and expand operations in China.No profits will be produced by the Chinese operation for 4 years, so earnings will be depressed during this period versus what they would have been had the finish not been made to expand in the market. (b) The company holds about half of its assets in the form of U.S. exchequer bonds, and it keeps these funds available for use in emergencies. In the future, though, SSC plans to shift its emergency funds from Treasury bonds to common stocks. Discuss how SSCs stockholders might view each of these actions, and how they might appropriate the stock price.7. Edmund Enterprises recently made a large invest iture to upgrade its technology. While these improvements wont have much of an sum on performance in the short run, they are expected to reduce future costs significantly. What consummation will this investment have on Edmund Enterprises earnings per share this year? What effect might this investment have on the companys stock price? 8. What agency relationships exist within a corporation?9. What mechanisms exist to influence managers to act in shareholders best interests? 10. Should shareholders (through managers) take actions that are detrimental to bondholders? 11. What factors affect stock prices?