BUSI 530 DB2 2 reply
Michael N. Matheis Jr.
BUSI 530 Discussion Board 2 Reply
Liberty University
November 8, 2014
The internal and external factors that affect a company’s stock can be managed effectively if there is a plan. The companies can effectively manage itself from within to provide a stable environment from within to balance those external factors that the company may not be able to control but is in a position to react to mitigate their effects. For a company to manage itself well enough to provide investors with strong financials, it must deal with all internal factors as well as the external factors. The value of the stock price is only what the investors are willing to pay for it. Using the estimates and ratios such as the P/E ratio lets investors make decisions by the numbers rather than by emotion (Brealey, Myers, & Marcus, 2012). The real value lies in the strength in the numbers that determine if the company is a profitable investment. Using historical numbers for a company an investor is more likely to make profitable decisions.
Reference
Brealey, R. A., Myers, S. C., & Marcus, A. J. (2012). Fundamentals of Corporate Finance. New York: McGraw-HIll/Irwin.
BUSI 530 Discussion Board 2 Reply
Liberty University
November 8, 2014
The internal and external factors that affect a company’s stock can be managed effectively if there is a plan. The companies can effectively manage itself from within to provide a stable environment from within to balance those external factors that the company may not be able to control but is in a position to react to mitigate their effects. For a company to manage itself well enough to provide investors with strong financials, it must deal with all internal factors as well as the external factors. The value of the stock price is only what the investors are willing to pay for it. Using the estimates and ratios such as the P/E ratio lets investors make decisions by the numbers rather than by emotion (Brealey, Myers, & Marcus, 2012). The real value lies in the strength in the numbers that determine if the company is a profitable investment. Using historical numbers for a company an investor is more likely to make profitable decisions.
Reference
Brealey, R. A., Myers, S. C., & Marcus, A. J. (2012). Fundamentals of Corporate Finance. New York: McGraw-HIll/Irwin.