ne of the most important features of a stock is its book value. The book value per share of Verticon’s stock for the year 2010 was equal to (10.954, 13.693, 11.502). Looking at the (Market cap, EPS, change in price, beta value, ROE) , you can see that this stock is relatively (more or less) volatile than the market as a whole. Based on the given price and (EPS,ROE, net profit margin) , you can determine that Verticon’s P/E is equal to (.06, 17, 11.8874, 20.3784) .
ne of the most important features of a stock is its book value. The book value per share of Verticon’s stock for the year 2010 was equal to (10.954, 13.693, 11.502). Looking at the (Market cap, EPS, change in price, beta value, ROE) , you can see that this stock is relatively (more or less) volatile than the market as a whole. Based on the given price and (EPS,ROE, net profit margin) , you can determine that Verticon’s P/E is equal to (.06, 17, 11.8874, 20.3784) .
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
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Question
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Use the following tables to assess the worthiness of Verticon stock as an investment.
Verticon Stock Data (Current and Historical)
|
3:45PM EDT Aug 16, 2011
|
|
|---|---|
| Price | 18.85 USD |
| Change | +0.64 (+3.51%) |
| Mkt cap | 147.1B |
| Div/yield | 0.20/4.24 |
| Shares | 8,012 |
| Beta | 0.70 |
| Book/share | 11.335 |
| EPS | 1.11 |
|
|
12/2010
|
12/2009
|
12/2008
|
|---|---|---|---|
|
(Millions of Dollars)
|
|||
| Total Assets | 195,014 | 195,949 | 111,148 |
| Total Liabilities | 107,201 | 122,935 | 53,592 |
| Preferred Shareholders’ Equity | 52 | 61 | 73 |
| Common Shareholders’ Equity | 87,761 | 72,953 | 57,483 |
| Shares Outstanding | 8,012 | 8,070 | 6746 |
| Book/Share | ? | 9.040 | 8.521 |
|
|
Q1 (Mar ’11)
|
2010
|
|---|---|---|
| Net profit margin | 15.24% | 12.24% |
| 11.60% | 9.30% |
Which one in bold?
One of the most important features of a stock is its book value. The book value per share of Verticon’s stock for the year 2010 was equal to (10.954, 13.693, 11.502).
Looking at the (Market cap, EPS, change in price, beta value, ROE) , you can see that this stock is relatively (more or less) volatile than the market as a whole.
Based on the given price and (EPS,ROE, net profit margin) , you can determine that Verticon’s P/E is equal to (.06, 17, 11.8874, 20.3784) .
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