TEXT BOOK: JONES, CP (2010) INVESTMENTS , ANALYSIS AND MANAGEMENT(11THED.)
HOBOKEN, NJ:JOHN WILEY & SONS, INC.
DIRECTIONS: ANSWER THE FOLLOWING QUESTIONS, SHOW YOUR WORK, INCLUDING ALL FORMULAS USED, IF THE QUESTION REQUIRES CALCULATIONS. USE COMPLETE SENTENCES WHEN REPORTING YOUR ANSWERS.
1. What is meant by ” intrinsic values:? How is it determined ?(20stage)
2. The Hall Dental Present agency sells at $32 pere share, and RXXXXX XXXXX, the CEO of this well-known Evaluation Triangle company, estimates the latest 12-month earnings are $4 per share with a dividend payout of 50%. Halls’s earnings estimates are very right.
A. What’s Hall’s current P/E ratio-10elements
b. if an investor expects earnings to develop by 10% a 12 months, what is the projected value for subsequent 12 months if the P/E ratio stays unchanged?-20elements
c. Ray Parker, President of Hall Dental Present Agency, analyzes the knowledge and estimates tha the payout ratio will keep the an identical.
Assume the anticipated progress worth of dividend is 10% , would this stock be an important buy? why or why not? (20elements)
d. if fee of curiosity are anticipated to say no, what is the probably impression on Hall’s P/E ratio?-10 Components
three. What impression does the market have on well-diversified portolios? What does this advocate regarding the effectivity of mutual funds?-10 elements
4. What is the relationship between primary analysis and intrinsic value?-10 elements