10 Assignment Keep the Highest/3 ttempts 3. Stock prices and Intrinsic values Benjamin Graham, the father of value Investing, once said, "In the short run, the market is a voting machine market is a welghing machine. In this quote, Benjamin Graham was referring to the key difference between of a security In November 2006, Citigroup's stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007-2008 Citigroup's stock price had plummeted to $4.27. Several banks went under, and others saw their stock prices los Based on your understanding of stock prices and intrinsic values, which of the following statements is true? The intrinsic value of a stock is based only on the perceived risk in the company A stock's intrinsic value is based on the fundamental cash flows and the company's risk. You can estimate the value of a company's stock using models such as the corporate valuation model and the diy following companies would you choose to evaluate if you were using the corporate valuation model to estimate to A company that has a stable distribution policy A company that is not expected to distribute any earnings to its stockholders for the next few years, Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society? Check a Successful companies attract more talent Workers prefer companies that minimize operating costs e Consumers benefit when companies rise prices beyond reasonable levels The owners of stock are society Grade It N