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| Teaching Since: | Apr 2017 |
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BS,MBA, PHD
Adelphi University/Devry
Apr-2000 - Mar-2005
HOD ,Professor
Adelphi University
Sep-2007 - Apr-2017
Week 6 Homework
Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. This homework assignment is worth 20 points.
1. Explain the use of the price-earnings (PE) ratio for valuing a stock. Why might investors derive different valuations for a stock when using the price-earnings method? Why might investors derive an inaccurate valuation of a firm when using the price-earnings method?
2. Describe the dividend discount valuation model. What are some limitations of the dividend discount model?
3. Explain how the value of the dollar affects stock valuations.
4. Will speculators buy or sell Treasury bond futures contracts if they expect interest rates to increase? Explain.
5. Why would a pension fund or insurance company consider selling stock index futures?
Note: please do not include the questions in the body of your homework since the SafeAssign will show a high percentage matching.
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