Stock using the most recent earnings per share (eps)

Assignment Help Finance Basics

Reference no: EM13754438

Write a paper of at least five (5) pages in which you:

Using the data available for the company comprising the largest percentage of your portfolio, calculate the dividend payout ratio, growth rate of the company's dividends, price-to-earnings (P/E) ratio, and the maximum P/E ratio that you would apply to this stock using the most recent earnings per share (EPS).
Using the infinite period Dividend Discount Model (DDM) and the required return, determine the value of each stock in your portfolio. Analyze any differences between the value of the stock calculated using the two (2) methods. Then, suggest why the values might differ.
Calculate the operating margin, asset turnover, interest burden, financial leverage, and tax rate for each of the five (5) years. Describe the role that each of the components plays in changes in net shareholders' equity for each year.
Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page is not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:

Assess overall corporate strategy to support the formulation of investment goals and objectives.
Analyze the individual investments in a corporate portfolio in relation to the market to support a firm's investment planning decisions.
Evaluate portfolio performance and develop recommendations to improve a firm's investment performance.
Use technology and information resources to research issues in corporate investment analysis.
Write clearly and concisely about corporate investment analysis using proper writing mechanics.

Reference no: EM13754438

Questions Cloud

Kathy snow wishes to purchase shares of countdown computing : 1. Kathy Snow wishes to purchase shares of countdown computing, Inc. The company's board of directors has declared a cash dividend of $0.72 to be paid holders of record on Wednesday, Sep. 21.a. What day does this stock begin trading ex dividend?b. Wh..

Query regarding small enterprise finance : Ben Toucan, owner of the Aspen Restaurant, wants to determine the present value of his investment. The Aspen Restaurant is currently in the development stage but Toucan hopes to "begin" operations early next year. After-tax cash flows during the next..

Uses double declining-balance depreciation : Calculate the book value of a three-year-old machine that cost $130,000, has an estimated residual value of $13,000, and has an estimated useful life of four years. The company uses double declining-balance depreciation. What is the book value?

System requires an initial investment in net working capital : Kolby’s Korndogs is looking at a new sausage system with an installed cost of $910,000. This cost will be depreciated straight-line to zero over the project’s seven-year life, at the end of which the sausage system can be scrapped for $105,000.

Stock using the most recent earnings per share (eps) : Using the data available for the company comprising the largest percentage of your portfolio, calculate the dividend payout ratio, growth rate of the company's dividends, price-to-earnings (P/E) ratio, and the maximum P/E ratio that you would apply t..

Evaluating audit results for assets in the audit : You are evaluating audit results for assets in the audit of Roberts Manufacturing. You set the preliminary judgment about materiality at $50,000. The account balances, tolerable misstatement, and estimated overstatements in the accounts are shown nex..

When multiple performance obligations exists in a contract : When multiple performance obligations exists in a contract, they should be accounted for as a single performance obligation when

Account for a contract modification as a new contract : A company must account for a contract modification as a new contract if

How big is the risk for kfc to enter the african market : How big is the risk for KFC to enter the African Market? What can go wrong? What would be your major concerns be when asked to find financing in the African market?

User Account

All Pages