Discussion board
Choose an article from The Wall Street Journal or other scholarly business publication related to estimating company growth using internal and external sources
Choose an article from The Wall Street Journal or other scholarly business publication related to estimating company growth using internal and external sources or calculating the cost of debt, equity, and weighted average cost of capital. Summarize the article in a one-page document and be sure to provide a link for your colleagues.
The Wall Street Journal and other accounting and finance publications may be found using the “Library and Research Help” item in the content area in Ulearn. Use the publications tab from this resource or use the Graduate School Library at large for your search. Remember articles should not come from blogs or summaries from general search locations such as Wikipedia or Investopedia. Scholarly work may be searched for using the Google app “Google Scholar.”
Important grading information. Starting with this discussion board you will be expected to display more work in your research. Please review the Discussion Rubric (docx) for more information about how you will be graded.
Your peer responses should add meaningfully to the discussion. Going beyond “I agree” or “nice work” statements, and instead show critical thinking about the topic at hand.
Often students question why they are not receiving top grades for their work in this area. A rubric is used for grading parameters, however, by simply meeting basic requirements for your leadership and participation, you will only generate average grades.
In order to receive top grades (90, 95, and 100 points) you will need to go beyond the basic requirements. You need to dig into the questions. Also providing additional research such as citing topical articles from respected sources (with links for your classmates to follow) will definitely improve your scores.
And finally, discussing sometimes means asking questions and then following up after responses are received. We have a very diverse group in terms of work history, education, and life experience. All helpful in making the discussion boards educational and enjoyable.
Here are two discussions which need to reply (100 words per reply) Discussion board need 200-300 words
discussion 1
This week, I researched how companies estimate growth using various resources. I believed this topic was interesting and is extremely prevalent during this post-pandemic era when companies are vamping up for success. To understand this topic better, I read an article called “Corporate foresight and its impact on firm performance: A longitudinal analysis”. This article evaluates a firm’s predicted performance using data on corporate foresight in 2008 as well as firm performance data from 2015 (Rohrbeck & Kum 2018).
The study was completed by taking a sample of multinational companies and evaluating their level of future preparedness. Future preparedness was measured using the following variables:
The company’s practices;
The organization
People
Methods
Information
Networks
Culture
the company’s ability to identify weak areas within the organization to gain competitive advantage;
the practices in which the firm strategizes;
and the ability of the organization to probe and experiment (Rohrbeck & Kum 2018).
In 2008, the researchers studied 83 multinational companies. In 2015, the researchers again took performance data, but due to the longitudinal nature of the study, only 70 companies remained active in the study and were evaluated (Rohrbeck & Kum 2018). By using these internal measurements, the researchers found that their predictions from 2008 were highly indicative of companies’ performance in 2015.
Resources:
Rohrbeck, René, and Menes Etingue Kum. “Corporate Foresight and Its Impact on Firm Performance: A Longitudinal Analysis.” Technological Forecasting and Social Change, North-Holland, 2 Jan. 2018, https://www.sciencedirect.com/science/article/pii/S0040162517302287.
discussion 2
One of my favorite social media apps is Pinterest. For my stock portfolio, I also included Pinterest because it is a company I use myself. In the Simply WallSt article “Is There An Opportunity With Pinterest, Inc.’s (NYSE:PINS) 47% Undervaluation?” the weighted average cost of capital is discussed because it is believed to be valued lower than the actual value. In the article, they are using the 2-stage method to calculate financials for Pinterest. This method is used to predict financials until 2031 with the present value of cash flows, terminal value, and the present value of terminal value. They are also using the Discounted Cash Flow model to estimate the stock’s intrinsic value by comparing the forecasted cash flows to the current cash flow values.
The article describes different assumptions that are made as well as some of the risk factors specific to Pinterest. They have even linked their own article about specific risk factors seen before with Pinterest, especially risks that have caused stock drops in the past. There were many terms in this article that I knew about from this course like stock volatility, terminal value, free cash flow, and DCF. Using their models and method, SimplyWallSt looks at the reasons why Pinterest is undervalued and shows a lower stock price than it is worth. As Pinterest is one of my stocks for my portfolio, I think it is really interesting to read about why a company would put themselves at a lower stock price when they are valued higher.
Here is the link to the article and there are more links on the page to read about the stock valuation of other companies as well, so you could see what valuation method the companies in your portfolio are using.
Answer preview choose an article from The Wall Street Journal or other scholarly business publication related to estimating company growth using internal and external sources
526 words