Corporate Financial Statements Stanford, Jim.

Article 3: Evaluation of high- and low- risk investment projects

Ispas, Constantin, Eduard Lovin, & Dana Tilina. (2009). Risk analysis in investment projects.

Annals of DAAAM & Proceedings. Retrieved October 23, 2010 at

Accurately evaluating the technical, economic and social risk of a new investment project is critical. Common potential risks include errors in evaluating opportunity growth; errors in data-gathering; misevaluating the priority of the economic objective to be achieved, mis-projections of project scope (otherwise known as project creep); and radical and unexpected changes in the economic environment. Evaluating risk is a multi-faceted process. It entails an understanding of the physical, functional, and staff required to realize the project; assessing vulnerabilities and possible remedies; risk adjustment; prioritizing on organizational risk hierarchies; making risk comparisons within the organization and globally; and appropriate use of risk matrices.

Article 4: Valuation of stock and stock portfolios

Lerzan, Aksoy, Bruce Cooil, Christopher Groening, Timothy L. Keiningham, & Atakan


(2008, July). The long-term stock market valuation of customer satisfaction,

Journal of Marketing, 72 (4): 105-122.

Many factors can be incorporated into the calculation of the value of stock and stock portfolios. According to the authors, customer-related metrics are often ignored in the valuation process. Analyzing customer satisfaction when evaluating the potential for stock returns has been shown to improve the accuracy of predicting a companys cash flow, long-term stock performance, and potential for shareholder value.


All of these articles bear witness to the idea that evaluating company performance and value cannot be based upon a single figure, or even a single method of analysis. Cash flow, risk, and even customer satisfaction must all be taken into account when making investment decisions..

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