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Assignment: SUMMARY OF POWERFUL EFFECTS OF CORONAVIRUS ON STOCK MARKET · What: Write a 2-page summary (prepared in Word) of the *one of the most dramatic financial macro factors of a lifetime effects of the history-making coronavirus* on the stock market. See the general guidance in the outline below. · How: Use at least 2 sources^ and cite those sources^ Hint: Using and citing 3 or more sources is an easy way to impress your teacher :>) (cited sources may be shown on a 3rd page) · When: Submit via Bb no later than Apr 29, 2021, 6pm. · Grading: There is no detailed rubric, but I will assess both content (including depth of research) and professional presentation (including proper grammar, spelling, etc.). Very importantly, equity and credit analysts assess not only the company itself, but also its competitors (industry) and macro effects. You have great latitude as to what macro facts-measures-statistics and/or charts-or-graphs you include in your paper; you’re encouraged to be creative in your research. As general guidance and examples only, you may want to consider: · What was the dimension of 2020’s stock-market price changes in the U.S. (S&P 500)? · How does this compare to market volatility in recent decades? E.g., is the size of the 1Q 2020 market drop unprecedented? · Are certain industries being hit harder than others? · How are markets in other countries reacting? · Note] Whether or not you directly use these words, you should be familiar with financial-market jargon such as: correction, bear market, recession. · Possible “macro effects to the macro effect”: Is the U.S. government (and/or other countries), in response to the coronavirus, reacting with changes in interest rates, tax rates, tariffs, or direct assistance to individuals/industries? · The big picture: A stock’s value is a function of future cash flows, discounted at WACC (weighted average cost of capital, a risk-adjusted discount rate). While some stock prices decidedly increased in 2020 (and into 2021), for prices that decreased -- do you think market prices are down due to reduced future cash flows, higher WACC (because of greater risk/uncertainty), or both? · How have companies reacted to the crisis? For example: Has it issued new earnings guidance? Closed any locations? Upped its on-line (e-commerce) game? Suspended (some) production, or (for the market winners) increased production? Reduced or eliminated its dividend? Suspended its stock repurchase program? Many years from now, people will still talk about the 2020/2021 coronavirus pandemic. And while the pandemic’s health aspects are decidedly more important than its financial aspects, as MBA students, it’s imperative that you’re aware of the history-making economic ramifications. ==============================================================================================