Determine whether stock prices are affected more by long-term or short-term performance. Provide an example of the effect that supports your claim.

Answer the following 4 finance questions:

1) Determine whether stock prices are affected more by long-term or short-term performance. Provide an example of the effect that supports your claim.

2) Define the most important capital budgeting techniques. Name at least two capital budgeting techniques (for example, NPV, IRR, Payback Period, et cetera) and describe how they are used to arrive at investment decisions.

3) What are the components of the Weighted Average Cost of Capital (WACC)? How is this rate used by a company? Provided at least 2 examples.
Further, what would cause a company to have a high/lower Weighted Average Cost of Capital? Does the type of industry influence the WACC? Provide some examples (at least 2) of factors that would contribute to a high WACC.

4) Explain the difference between financial statements and pro forma financial statements. Describe how these statements are developed and used in financial management and planning

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