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Many businesses have been adversely affected by the global pandemic. We have seen a surge in the travel industry lately because we just want to
Many businesses have been adversely affected by the global pandemic. We have seen a surge in the travel industry lately because we just want to travel, right? However due to many factors, many airlines in particular are not ready for us. In your discussion (in two or three paragraphs) FIRST CHOOSE and name a specific airlines company. Then think about how that airlines has been affected over the past 3 years, specifically using a general stock valuation model: 1) Dividends, 2) Growth of the dividends and earnings, and 3) The Required Return on the stock. What drives each of these three variables for an airlines company? For each variable, has that number most likely gone up, gone down? Why? And how does that affect overall valuation (in terms of the stock valuation model). Please refer especially to Section 7.3 in the ebook and the general stock equation, Eq. 7.4 in Chapter 7. You do not have to extensively research the airlines industry or an individual airlines but feel free to read a little about the pandemic's impact on the airlines and travel industries. This assignment is primarily about how the three variables in the valuation model are affected (i.e., changing, amount and direction) and how these changes affect valuation of an individual airlines. Let me know if you have any questions
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