1. discuss the current stock market and bond market environment due to Fed Reserves' plans with stimulus. 2. 1. In reference to stocks; what is the difference between the market risk versus the s
Assignment
Learning Outcome: Fundamentals of Stocks
Reference: Reading assignments, posted recorded lectures and research on Finance sites
In your own words describe how each parameter is calculated and what does it mean for investing : 50 points
Earnings per share (EPS)
Market Cap
PE ratio
Price to book ratio
PEG ratio
PEGY ratio
Large Cap versus small cap companies ( give couple if example of each , names of companies and current market cap)
Which is more volatile, large cap or small cap stocks, explain why?
Which has higher beta, a large value cap stock or growth stock? Provide example with company names and BETA for each)
What does Beta measure?
Which has higher BETA, large cap stock or growth stock? Provide examples; company names and Beta value.
Use Income statement shown below and calculate : Current Market cap, PE ratio, Earnings per share, Dividend yield ,PEG ratio and PEGY ratio ( 30 points)
| Total Revenue | 25,878,372 | ||
| Cost of Revenue | 18,521,400 | ||
|
| |||
| Gross Profit | 7,356,972 | ||
|
| |||
|
| Operating Expenses | ||
|
| Research Development | - | |
|
| Selling General and Administrative | 4,250,446 | |
|
| Non Recurring | - | |
|
| Others | - | |
|
|
| ||
|
| Total Operating Expenses | - | |
|
| |||
| Operating Income or Loss | 3,106,526 | ||
|
| |||
|
| Income from Continuing Operations | ||
|
| Total Other Income/Expenses Net | - | |
|
| Earnings Before Interest And Taxes | 3,106,526 | |
|
| Interest Expense | 29,175 | |
|
| Income Before Tax | 3,077,351 | |
|
| Income Tax Expense | 1,170,664 | |
|
| Minority Interest | - | |
|
|
| ||
|
| Net Income From Continuing Ops | 1906687 | |
|
| |||
| Net Income | 1,906,687 | ||
| Current Outstanding shares |
| 4,800,000 | |
| Expected Earnings growth % |
| 12.00 % | |
| Dividend $ per share |
| $ 1.5 | |
| Current stock price |
| $ 50 | |
| CALCULATE |
|
| |
| Current Market Cap |
| ? | Each ? is 5 points |
| EPS |
| ? | |
| Dividend yield |
| ? | |
| PE ratio |
| ? | |
| PEG ratio |
| ? | |
| PEGY ratio | ? | ||
