Discussion board #1
In Stage Three, finger-pointing and “I told you so” syndrome can take over. Explain why you believe this happens. Provide a recent example, and describe what the organization or person could have done to avoid the finger-pointing from happening.
Discussion board # 2
Do you agree or disagree that CEOs should be spokespeople in a crisis rather than someone else? Why, or why not? In what situations should they be the spokespeople?
Discussion board # 3
Select a company of your choice, and discuss its current beta. If the company’s beta were to double, would its expected return double? Would you add this stock to a portfolio? Why, or why not?
Respond to post
Beta can be described as a measure of a securities volatility or systematic risk compared with the market (Kenton, 2021). The beta model is used to price capital assets (Kenton, 2021). For this example, I chose Netflix Inc., whose beta is 1.51. As Netflix Inc’s., beta is above 1, its products are highly volatile (Analytics, 2022). Despite its products reaching a wide market, the company’s services are received well. Therefore, it is expected that the stock will increase more when the market is upward and decrease more than the market when it is downward (Analytics, 2022). In this case of higher beta, Netflix’s expected returns are unlikely to double due to risk and competition. Netflix may be worth adding to my portfolio.
Discussion board # 4
Think about a few personal projects you have been involved with in the last year or so. A project could be anything from planning a vacation, building a patio deck, or even mowing the grass or painting a room. Discuss the capital budgeting you had to do in order to complete the project. What types of projects do you think require the least detailed and the most detailed analysis?
Respond to post
For example, my husband and I completed a replacement project by refinishing our basement. We replaced the flooring and added new paint. The capital budgeting process is an integral part of a company’s long-term financial planning (Oke & Conteh, 2020). Capital budgeting analyzes projects and decides which ones to accept and finance (Brigham & Ehrhardt, 2020). Furthermore, capital budgeting is an investment concept involving committing current funds that can result in future desired returns (Oke & Conteh, 2020). Projects that require the most detailed analysis would be an expansion project since it will take longer and has a higher risk and investment. A project that requires minimal analysis is the one that needs to continue operations such as replacement projects.