At any point in time, the market value of a firm’s common stock depends on many factors.
Respond to the following in a minimum of 175 words:
- Visit finance.yahoo.com Select a Alabama Power Company and look up the company’s stock’s performance over the last year. Discuss which company you selected and its performance.
- What do you think are the market forces that might have influenced the value of the company’s stock at its peaks and valleys?
- What do your findings indicate about your selected company’s financial health?
RESPOND TO Saipraiseuth and Jose post.
Saipraiseuth post
I have visited Yahoo finance and I have selected NVLHF or Nevada Lithium Resources Inc. I do not know if this company was use as discussion for Finance 370T this year or last year. Opening at.0121 and high is.1285 close at0.1207 had changes of 12.68.
What do you think are the market forces that might have influenced the value of the company’s stock at its peaks and valleys?
Lithium surge due to it s high demand for electric car, video game, phone and computer, all this items are demand daily. Metallurgy is popular due to its high charge and low atomic mass. Between the now and the year of 2040 lithium market will be soaring, the struggle demand for lithium are unable to keep up with world demand due to extraction and process. As of this morning say around 10 CST, NVLHF started or open low 0 .1134 high 0.1285 +0.0205 (+18.9815%) (peak for first day was 18.98 and valley was 1.11) 2 days it changes 12.25 3 days 13.66 4 days changes of 17.89 points. Value total gain 44.9 points in four days one can assume it will have positive YTD.
What do your findings indicate about your selected company’s financial health?
There are six best lithium stock out here despite shortage on demand the company manages to summon on the needed material, as stated earlier raw material make batteries for computers, video game, electric cars, and mobile phones, lithium are environmental friendly that is why they are in high demand. Since the start of assignment I have been monitors NVLHF for four days and it has positive day to day lookout and I can tell it will have good YTD results.
Jose post
For this week’s discussion, I am choosing the company “Rolls Royce Holdings plc (RLLCF). I chose this company because I have a close friend that was a manufacturing engineer for a company that manufactured parts for Rolls-Royce. It was quite surprising seeing them on Yahoo’s Losers list. Their performance has not been the best as it it is currently at $.0054 a share. This is the lowest they have been as last year they reached a low of $.0063 a share in February of 2022. I believe what influenced the lows this company has had is they possibly had some internal company issues because they recently announced a new CEO. The financial health of this company does not look good. Some things have to change or the company will not survive. It is said that the new Chief Executive said that the company is a “burning platform” and that the company must change the way it operates or the company will not survive. I am not sure what changes the new chief may bring, but I am interested in seeing how this company does this year.
RESPOND TO Kimberly and Christopher post
When performing a hypothesis test for a mean with the known alpha using z, you should do the following steps:
Step 1: State the hypotheses. For this discussion, the appropriate null (Ho) and the alternative (H1) hypotheses are Ho: mu is greater than or equal to 50 lbs. H1: mu is less than 50 lbs. The mean for this discussion is 49.13 and the standard deviation is 1.74. We will use this to calculate the test statistic.
Step 2: Specify the Decision Rule – use the level of significance to find the critical value of the z statistic that determines the threshold for rejecting the null hypothesis to be alpha = .05. The critical value of z that accomplishes this is z.05 = 1.729. You would reject Ho if zcalc is less than 1.729.
Step 3: Collect Sample Data and Calculate the Test Statistic- zcalc = 49.13 (mean) – 50 (weight of bags) divided by 1.74 (standard deviation)/square root of 20 (# of samples) = -.87/.389 = -2.236 or -2.24. Based on this information, the bags are indeed being underfilled and the machinery needs to be recalibrated. Also, we need to reject our hypotheses.
Christopher post
From looking at the scenario and to determine whether the bags are indeed being underfilled by the machinery, we are to test if the mean weight of the bags is less than 50 pounds or not. We thus set up our null and alternative hypotheses as:
H0: mu = 50 vs H1: mu < 50
where mu is the Population mean of the bag’s weight.
The test statistic is T= (xbar-mu0)/(s/sqrt(n)) ; where xbar = sample mean, mu0 = the hypothesized value of the population mean, n = sample size, s = sample standard deviation, sqrt refers to the square root function. Under H0, T ~ t(n-1)
The decision rule is–we reject H0 if T(observed) < – t(alpha,(n-1)), where t(alpha,(n-1)) is the upper alpha point of the t – distribution with (n-1) degrees of freedom. alpha = level of significance.
The critical value if we work with a significant level α = 0.05 is -t(0.05,(n-1)) = -1.729133 (Obtained from the probability table of Student’s t distribution)
Here, the test statistic is T(observed) = -2.231851
Hence, T(observed) < – t(alpha,(n-1)).
We can reject H0 and conclude at a 5% level of significance on the basis of the given sample that there is enough evidence to support the claim that the average value of mean weight of the bags is less than 50 pounds.
Yes I do believe the the machinery should be recalibrated.
