FIN 534 Week 4

Risk and Return” Please respond to the following:

* From the e-Activity, determine whether stock prices are affected more by
long-term or short-term performance. Provide one (1) example of the effect that
supports your claim.
* From the scenario, value a share of TFC’s stock using a growth model
method and compare that value to the current trading price of a share of TFC.
Determine whether the stock is undervalued or overvalued. Provide a rationale
for your response.