The essay will be in APA format and be 500-1,000 words in length (this range includeseverything in...

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The essay will be in APA format and be 500-1,000 words in length (this range includes everything in the assignment including your name, title, and citations). Turnitin.com software will be used to...

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The essay will be in APA format and be 500-1,000 words in length (this range includeseverything in the assignment including your name, title, and citations). Turnitin.com

software will be used to ensure that submitted assignments are original works.

Hint: One way to find information for this assignment is to use the library’s database for the Wall Street Journal or Barron’s and search for a recent article with the words “value investor” or “growth investor” in the text of the article.

Textbook reference:

Berk, J. & DeMarzo, P XXXXXXXXXXCorporate Finance: The Core (Fourth Edition). Boston, MA: Pearson.

1- Assignment Instructions:

This writing assignment should be in an essay format. It should use two or more published

news or academic articles which are less than a year old as cited references. In your essay,

you should answer the following questions:

· What are value stocks?

· What are growth stocks?

· What is the reasoning that investors use for purchasing value or growth stocks?

· Has value or growth investing worked best over the long term?

· Do you prefer one of these investment methods? Justify your response.

· Find recent examples of news articles in which someone is described as a value or

· growth investor. How successful have they been with this method?

case-assignment-1-request-25ypznmy.docx case-assignment-1-request-sxnap4ct-kxdln3xz.docx

Answered Same Day Mar 27, 2021

Kushal · Accepted Answer

Growth Stock - 
Growth stocks are the companies which have very high potential of growing in the future and this can be understood using the industry life cycle. These companies can be early in their life cycle and they are going to witness good growth in the future as far as the revenues are concerned. There is a possibility that these stocks are highly valued, not due to their current fundamentals but due to their growth potential. These high growth stocks do have high PE ratios due to lesser earnings currently and majority of the share price is due to present value of the growth opportunities. These firms do not pay more dividends since they need to invest back into the firms and ensure that the topline should keep growing.
Value Stocks -
This investment strategy investors identify the high quality companies with a very healthy balance sheet, very good brand name, very established reputation, sound fundamentals, high net income generating and dividends paying companies which they feel are somewhat undervalued and true potential for the investors has not been unlocked yet. The definition of high quality companies is broad and highly subjective but investors tend to place their bets on the blue chip stocks rather than penny stocks. These companies are mature companies and they derive majority of their value from the current book value.

The essay will be in APA format and be 500-1,000 words in length (this range includes everything in the assignment including your name, title, and citations). Turnitin.com software will be used to...

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