Please explain and support your reactions to the following question below and provide references and/or in-text citations. Thank you for your time, support, and understanding in advance.

Discuss "Applying the Concepts"

This chapter (2) has introduced some of the basics of financial statements, taxes, and cash flow. Please give us one example from your work, or personal life of an application of the material we have covered during this chapter.

Reference:

Ross, S. A., Westerfield, R., & Jordan, B. D. (2013). Fundamentals of corporate finance. New York: McGraw-Hill/Irwin.

Here's an example answer from a student:

Personally I don't work in the business field but what comes to my mind is WWE back in 2011. Prior to that point the WWE was considered a PG-13/ TVMA company, but when they decided to start up a second IPO the public image of the company had to change. Now we tune in weekly to see a kinder gentler product. WWE has to work a bit harder to not offend anyone, in fear of losing corporate sponsors. (Gone Baby Gone, 2011) Policy changes brought in what we now know as the WWE PG era, a move to change the stereotypical wrestling company to an "sports entertainment" conglomerate. As of April of 2018, the company finally passed the $40 per share mark, which is a major accomplishment considering the struggles the company has been going through for the last 10-15 years. It's initial IPO opened at $30.50 in 1999, but with no competition after WCW went belly up in 2001 share price declined by 58%, by 2002 shares fell to $6.86. Since then they've came up with different strategies and cost cutting measures to change the landscape of the company, creating its own streaming network and prioritizing its core fan base which are kids, teenagers, and young adults. Chairman Vince McMahon has a motto of giving the audience what they want even when they don't know they want it.

References:

Gone Baby Gone. (2011). WWE: Is Being a Publicly Traded Company a Good Thing for Wrestling and WWE? BleacherReport.com. Retrieved from: https://bleacherreport.com/articles/646935-wwe-is-being-a-publicly-traded-company-a-good-thing-for-wrestling-and-wwe (Links to an external site.)Links to an external site.

Konuwa, A. (2018). WWE Stock Stays Hot, Surpasses $40 For The First Time Ever. Forbes. Retrieved from: https://www.forbes.com/sites/alfredkonuwa/2018/04/28/wwe-stock-stays-hot-surpasses-40-for-the-first-time-ever/#334ff7e079ce