WS 5.3 _ Cash Flows & Stock Valuation _ Responses 1 and 2.docx

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Cash Flows and Stock Valuation Response 1 Jay provided a clear and logical analysis for this week’s discussion assignment “Cash Flows and Stock Valuations.” This was an area that I had a better understanding then last week’s discussion on bond valuation. Jay supported his analysis with references from textbook and Investopedia that were consistent with experts in the field. Investopedia has been a reliable source for a quick understanding and/or definition. Jay exceeded the requirements of the assignment. Jay makes note that stock valuations are difficult to determine than bond with three reasons. Claire Boyte-White mentions how the stock market is largely dictated by human psychology. If an investor thinks the future is bright for a given company, he wants to invest as soon as possible to reap the maximum profit (2017, March 3). Jay discusses reasons why investors are willing to invest in companies that do not pay dividends. Companies that pay lower than normal dividend or no dividend at all may be

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