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

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Assignment

Learning Outcome: Fundamentals of Stocks

Reference: Reading assignments, posted recorded lectures and research on Finance sites

1. In your own words describe how each parameter is calculated and what does it mean for investing : 50 points

 

1. 1. Earnings per share (EPS)

   2. Market Cap

   3. PE ratio

   4. Price to book ratio

   5. PEG ratio

   6. PEGY ratio

   7. Large Cap versus small cap companies ( give couple if example of each , names of companies and current market cap)

   8. 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)

1. 1. What does Beta measure?

   2. Which has higher BETA, large cap stock or growth stock? Provide examples; company names and Beta value.

 

1. 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		?