Time Value of Money, Stocks, and Bonds
Topic: Several factors, both internal and external, impact a company’s stock price, and the subsequent perceived valuation of a company. Sometimes that perceived value matches that of the financial statements, and other times it is vastly different. Therefore, discuss the factors that lead to a valuation of a company’s worth compared to that of the financial statements, and how company executives create the most value for all stakeholders.
- Time Value of Money, Stocks, and Bonds
6 – Valuing Bonds
7 – Valuing Stocks
300 Words
2 Citations
APA Format
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Valuation of a company’s worth is an imprecise science. There are always questions whether it should be based on the market price or book value. Factors that lead to the valuation of a company’s worth include the historical profits, assets, cash flow and liabilities. Other factors include income and cash flow projections, and intangible assets such as patents, brand names, quality and reputation of management, and goodwill. The factors that lead to customer value take into consideration the profitability of the company…
APA
381 words