The readings for module 3 explain that past performance for a company or stock is not a guarantee of future performance. Yet many models for stock and company valuation link the value of past performance to future expectations. If there is no guarantee, why do you think that past performance is used to predict future company performance and stock returns?

The readings for module 3 explain that past performance for a company or stock is not a guarantee of future performance. Yet many models for stock and company valuation link the value of past performance to future expectations. If there is no guarantee, why do you think that past performance is used to predict future company performance and stock returns?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4LTAI

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Please help me fill in the blanks. If you can please include what rules/info/formulas I would need to know to solve problems like these in the future. I am espcially confused with how to calculate the additional paid in capitial and treasurey stock; please let me know if everything else is correct.