Students will need to post a link to an article from Wall Street Journal regarding a current event (something in the last 60 days before each post) regarding a topic of your choice from related Chapters.

The Post

Here are some concepts to consider from the chapters 9 - 11:

• Define the legal rights of stockholders.
• Recall the distinction between a stocks price and its intrinsic value.
• Identify the two models that can be used to estimate a stocks intrinsic value: the discounted dividend model and the corporate valuation model.
• Recognize the key characteristics of preferred stock, and describe how to estimate the value of preferred stock.
• Select why the weighted average cost of capital (WACC) is used in capital budgeting.
• Recall the costs of different capital componentsdebt, preferred stock, retained earnings, and common stock.
• Recognize the different component costs to determine the firms WACC.
• Recognize capital budgeting.
• Select and use the major capital budgeting decision criteria, which are NPV, IRR, MIRR, and payback.
• Recall why NPV is the best criterion and how it overcomes problems inherent in the other methods.

Please summarize the article/events, comment on how it relates to the chapter materials, and how it applies to the real-world and Financial Management issues.

You will be evaluated on how current the article is, how closely it relates to the topics in the chapters and the quality of the contribution to the discussion in class. Your post should be 200-250 words.