ABP-1-Guidelines-Spring-2024

M I S 1 1 1 - C o m p u t e r s a n d t h e I n t e r n e t w o r k e d S o c i e t y Applied Business Project 1 Guidelines Eller College of Management This document contains detailed instructions for completing the ABP-1 assignment Initial Release: 11 March 2024 Spring 2024 On-time Deadline for Completing Submission of ABP-1 Wednesday, March 20, 2024 by 11:59pm The D2L submission process (i.e., the upload of your report must finish and a confirmation message displayed by D2L) must be completed by 11:59pm local Tucson time (MST or UTC/GMT-7) by the assignment due date. This is an absolute deadline and no extensions are offered to the on-time assignment due date, so be sure to plan your work and submission attempts accordingly.

APPLIED BUSINESS PROJECT 1 GUIDELINES 2 MIS 111 Online – Spring 2024 Page 2 Table of Contents Assignment Overview ........................................................................................................................... 4 Fundamental, Technical, and Quantitative Analysis Overview ............................................. 4 Finding Your Required Assigned Company .................................................................................. 5 No Cost Access to Data Sources for Analysis ................................................................................ 5 Important Note: Yahoo! Finance Premium is NOT required ............................. 5 Task 1: Company Profile ..................................................................................................................... 6 Important Note ............................................................................................................................... 6 Task 1.1: Company Governance .................................................................................................. 6 Task 1.2: Financial Profile ............................................................................................................. 7 Task 1.3: Investment Assessment ............................................................................................... 8 Task 2: Fundamental Analysis .......................................................................................................... 9 Task 2.1: Financial Metrics ............................................................................................................ 9 Important Note ............................................................................................................................... 9 Task 2.2: Media Perspectives .................................................................................................... 12 Section 3: Quantitative Analysis .................................................................................................... 12 Important Note ............................................................................................................................ 12 Task 3.1: Stock Price Analysis ................................................................................................... 13 Task 3.2: Industry Stock Price Graph ..................................................................................... 15 Task 4: Technical Analysis .............................................................................................................. 18 Task 4.1: Financial Metrics Needed to Calculate Financial Ratios ............................... 18 Task 4.2: The Acid Test ................................................................................................................. 19 Task 4.3: Working Capital Ratio ................................................................................................ 19 Task 4.4: Price to Book Ratio ...................................................................................................... 19 General Applied Business Project Report Guidelines ............................................................ 21 Required Business Report Formatting Elements ............................................................... 21 Items your structured business report MUST: ......................................................... 21 • Use the ABP-1 Report Template file posted on D2L ............................................ 21 • Make no changes to the template’s E-tegrity Statement ................................... 21 • Be submitted to D2L as a PDF-formatted document .......................................... 21 REQUIRED Text for E-Tegrity Statement ..................................................................... 21 Citing Sources Required for Discussion Questions, Tables and Figures .................... 22 Required Table and Figure Formatting Checklist ................................................................... 22 Important Note: Correct Use of Style Sample Figures and Tables ................ 22

APPLIED BUSINESS PROJECT 1 GUIDELINES 4 MIS 111 Online – Spring 2024 Page 4 MIS 111 Applied Business Project 1 Assignment Overview A key contribution of Information systems for an enterprise is the ability to convert data into information (data in context). For this project, your task is to create a structured business report for your assigned publicly traded company from fundamental, technical, and quantitative investment perspectives. Your business report will discuss the following aspects of your assigned company: • a profile of your assigned company and its industry; • a fundamental analysis of your assigned company’s financial statement; • a technical analysis assessing the trading data of your assigned company and a competitor in the same industry sector against the broader exchange market as a whole; and, finally, • a quantitative analysis of your assigned company based on comparing key financial ratios. Fundamental, Technical, and Quantitative Analysis Overview The most common methods that investors use to analyze the benefits and risks associated with long-term investments in the stock market include fundamental analysis, technical analysis, and quantitative analysis. Long-term investors look for investments that offer a greater probability of maximizing their returns over a longer period of time. Generally, this means at least one year, although many financial experts suggest time frames of five to ten years or longer. One of the benefits of being a long-term investor is the ability to save and invest for big goals that require significant time to achieve the highest rewards, such as retirement. By understanding the differences between fundamental, technical, and quantitative analysis methodologies, long-term investors give themselves access to three valuable stock-picking strategies they can use for making profitable investment decisions. Investors and analysts will frequently use a combination of fundamental, technical, and quantitative analysis when evaluating a company’s potential for growth and profitability. • The goal of fundamental analysis is to come up with a fair value of a company by evaluating all aspects of the business, along with the industry, the market as a whole, and the domestic and global environment. • The goal of technical analysis is to evaluate data—such as historical returns and price changes—to chart patterns that can be used to estimate future price movement for securities and the market as a whole. • The goal of quantitative analysis is to use simple financial ratio calculations to gain insight into the valuation of a specific company or broad market.

APPLIED BUSINESS PROJECT 1 GUIDELINES 5 MIS 111 Online – Spring 2024 Page 5 Fundamental analysis is most often used when determining the quality of long-term investments in a wide array of securities and markets, while technical analysis is used more in the review of short-term investment decisions such as active trading of stocks. Investors use quantitative analysis to evaluate the financial stability of a company. Adapted from: Horton, Melissa (February 5, 2020), Investopedia, “When to Use Fundamental, Technical, and Quantitative Analysis”, https://www.investopedia.com (Accessed: 18 January 2021). Finding Your Required Assigned Company The ticker symbol and name of your assigned company can be found on D2L under Grades in the “ABP Ticker” and “ ABP Company Name ” items. Using your ticker symbol, we recommend using https://finance.yahoo.com to find information about the company, an industry competitor, and the market averages. No Cost Access to Data Sources for Analysis All information required for this assignment is available at no cost on the standard access Yahoo! Finance website at: https://finance.yahoo.com/ Important Note: Yahoo! Finance Premium is NOT required for this assignment. If you encounter data that is not accessible or blocked by a paywall, please contact an instructor for assistance with accessing the required information. While we recommend using Yahoo! Finance, you may use other sources, such as CNN Money, or other commercial investment services; however, the names used for some financial measures may not be the same used in this document. IMPORTANT NOTE To receive full credit for this assignment, you must use your assigned company, as shown in the “ABP Company Ticker” item in your MIS 111 grade book on D2L

APPLIED BUSINESS PROJECT 1 GUIDELINES 7 MIS 111 Online – Spring 2024 Page 7 Task 1.2: Financial Profile For Task 1.2 , create a second table showing your company’s “financial profile” using the information from a trading day since this ABP was posted on D2L (i.e., on or after March 11, 2024 ). You must include the date you collected your data as the first item in your Task 1.2 table, as shown in the style sample below. For your selected specific trading day ( on or after March 11, 2024 ), prepare a table with ONLY the following data ( do not include any additional items ) obtained for your company from Yahoo! Finance in the [Summary], [Statistics], [Analysis], and [Holders] sections, as shown below: • Date selected for your financial profile (on or after March 11, 2024) • Fiscal Year Ending Date (“Statistics”) • Daily volume (Volume) (“Summary”) • Average daily volume (Avg. Volume) (“Summary”) • 52 week range (high and low) (“Summary”) • Float (Shares available for trading by the public) (“Statistics”) • Market Capitalization (“Market Cap”) (“Summary”) • Name of the top institutional holder and the percentage held (“Holders”) • Descriptive Analyst “Fair Value” estimate (e.g., Overvalued) (“Summary”) • Descriptive Analyst Recommendation Rating (e.g., Strong Buy) (“Summary”) Table 2 – Walmart Financial Profile (Source: https://finance.yahoo.com/quote/WMT/holders?p=WMT Referenced 8/25/2020) Important Note - Required Caption/Reference/Title Formatting: Table 2 must include a caption, a reference to your source, and a merged cell highlighted with a background color, as shown in the “Required Table and Figure Formatting Checklist” as shown in the “General Applied Business Project Report Guidelines” Task 1.2 Financial Profile The date of Financial Profile 8/25/2020 Previous Close 131.33 Volume 6,593,002 Average volume 8,748,015 52 week range (high and low) 102.00 - 137.63 Percentage of shares owned by insiders 50.91% Percentage of shares owned by institutions 30.95% Analyst Fair Value Recommendation Overvalued Recommendation Rating Sell

APPLIED BUSINESS PROJECT 1 GUIDELINES 8 MIS 111 Online – Spring 2024 Page 8 Since Yahoo Finance only displays this information on the summary and holdings pages for each company for one trading date, it is highly recommended that you screenshot the webpage or complete all parts of Task 1.2 of your project contemporaneously with the trading day you prepare your analysis for this task. On Yahoo Finance, when looking at your company, the “Fair Value” assessment can be found on the left side of the “Summary” page below the summary financial date. The “Recommendation Rating” area on the “Summary” as one of the items in the right- hand column that contains a number of reports about the company. In addition, the “Recommendation Rating” can be found on the “Analysis” page. Task 1.3: Investment Assessment For Task 1.3, write a 150 word original (i.e., in your own words) assessment (range: 125 – 175 words) of your company’s stock price in a way that is consistent with either the Fair Value or Recommendation Rating guidance shown in Task 1.2. Important Note on Yahoo+ Content You are NOT required to buy Yahoo Finance Plus (Y+) for this task. Your task is to determine independently a justification for the analysts Recommendation Rating or Fair Value for your company. Beyond the trading activity (stock price and volume) and your stock’s current share price relative to its 52-week price range, why do you think the analysts view your company’s stock as “overvalued” or instead a “buy” opportunity? Be sure to indicate which metric you are assessing (Fair Value or Recommendation Rating) and provide a specific justification based on information you found related to your company. When preparing Task 1.3, you can consider either objective (e.g., recent financial performance or product sales trends) or subjective (e.g., press releases by your company and or other published news sources) performance measures. Be sure to include a citation for any sources you reference when determining your answer. Task 1 Self-Assessment Quality Review [20 points] Point Goal 0-5 points 6-10 points 11-15 points 16-20 points Assessment (Based on the specific criteria defined for each subtask) Did not attempt or incorrect content in two or more tables and/or written assessment or citations Did not attempt or incorrect content in one or more tables and/or written assessment and citations Some incorrect content in one or more tables or written assessment and citations Materially included most or all content in tables, written assessment and citations

APPLIED BUSINESS PROJECT 1 GUIDELINES 10 MIS 111 Online – Spring 2024 Page 10 Task 2.1 Financial Metrics • From Financials Tab / Balance Sheet Section o Assets  Total Assets  Current Assets  Inventory o Liabilities  Total Liabilities Net Minority Interest  Current Liabilities  Long Term Debt and Capital Lease Obligation o Common Stock (value may be reported for your company only as either Total Equity Gross Minority Interest or Stockholder’s Equity) • From Financials Tab / Income Statement Section o Total Revenue o Cost of Revenue o Gross Profit (negative values indicate a loss) o Operating Income (negative values indicate a loss) o Net Interest Income (negative values indicate a net expense) o EBIT (Earnings Before Interest and Taxes) • From Financials Tab / Cash Flow Statement o Operating Cash Flow o Investing Cash Flow o Financing Cash Flow o End Cash Position o Changes in Cash • Under the “ Historical Data ” tab, find the following values for the last trading date for the 3 recent fiscal years used to gather the financial information above. As a reminder, the last trading day may be different than the last calendar day in a company’s fiscal year o “Adjusted Close” stock price o Volume (number shares of stock traded) Important Note - Conventions on Historical Data: Trading Day - A “trading day” is when stocks are traded (bought and sold) on the market (NYSE or NASDAQ) for the stock. Since stocks are not traded on weekends or national holidays, the last trading day of each month may not be the last calendar day of the month; for example, the last trading day for December 2023 was December 29 th .

APPLIED BUSINESS PROJECT 1 GUIDELINES 11 MIS 111 Online – Spring 2024 Page 11 Important Note - Consistent Use of Scaling for Table Values - The values shown in the major financial reports (and large values such as the Market Capitalization on the Summary page) are commonly shown “in” (i.e., rounded off to) thousands, millions (M), or even billions (B). As shown in the sample table below, all values reported in this table are shown in millions. When using values from Yahoo! Finance for calculations, be sure that magnitudes of all of the values you are using are consistent. Table 3 – Walmart Financial Profile (Source: https://finance.yahoo.com/quote/WMT Referenced 8/25/2020) Important Note - Required Caption/Reference/Title Formatting: Table 3 must include a caption, a reference to your source, and a merged cell highlighted with a background color, as shown in the “Required Table and Figure Formatting Checklist” as shown in the “General Applied Business Project Report Guidelines” Closing Date --> 1/31/2020 1/31/2019 1/31/2018 Cash and Cash Equivalents 9,465 7,722 6,756 Inventory 44,435 44,269 43,783 Total Current Assets 61,806 61,897 59,664 Total Non-Current Assets 174,689 157,398 144,858 Total Assets 236,495 219,295 204,522 Accounts Payable 46,973 47,060 46,092 Total Current Liabilities 77,790 77,477 78,521 Total Non-Current Liabilities 77,153 62,184 45,179 Total Liabilities 154,943 139,661 123,700 Total Operating Expenses 108,791 107,147 106,510 Operating Income or Loss 20,568 22,117 22,249 Net Income 14,881 6,670 9,862 EBIT 22,715 13,806 17,453 Normalized EBITDA 33,702 24,484 31,118 Cash flows from operating activities 25,255 27,753 28,337 Cash at Beginning of period 7,756 7,014 6,867 Cash at end of period 9,515 7,756 6,756 Free Cash Flow 14,550 17,409 18,286 Adj. Closing price on Closing Date 113.02 92.72 100.75 Stock Volume on Closing Date 7,775,800 14,723,000 9,812,800 Cash Flow Statement Fundamentals Historical Stock Price Data Task 2.1 Historical Stock Analysis and Fundamentals (in millions except per share items) Balance Sheet Fundamentals

APPLIED BUSINESS PROJECT 1 GUIDELINES 13 MIS 111 Online – Spring 2024 Page 13 Task 3.1: Stock Price Analysis For Task 3.1, you will evaluate how your company has performed over the period December 31, 2022 to December 31, 2023 in comparison to a company in the same “Industry” and the broader market (NYSE or NASDAQ) where your company is traded. The term “Industry” commonly refers to a series of companies that operate in a similar business sphere. A company’s “industry” is determined by the product or service that generates the largest revenue for a company at a specified location in the past year. For the purposes of this assignment, you should select a company that matches the “industry” specified in your assigned company’s “Profile” section. The Dow Jones Industrial Average (DJIA) and NASDAQ Composite are widely watched benchmark indexes in the U.S. While the Dow 30 is a price-weighted index that tracks 30 large, publicly owned companies traded on the NYSE, the NASDAQ Composite is a market-cap-weighted index of more than 2,500 stocks and other financial instruments traded on the NASDAQ exchange. You must use the market average for your assigned stock, either the Dow30 Average (traded on the NYSE) or the NASDAQ Average (for stocks traded on the NASDAQ), To find the historical data for the market where your stock is traded, select either the “Dow 30” (also known as the “Dow Jones Industrial Average”) or “Nasdaq” (also known as the “NASDAQ Composite”) charts shown above your company’s information, and then select “Historical Data” under the market webpage. The format of your Stock Price Analysis table must be formatted as follows: • Your table should include a title line, above four columns (Closing date, and adjusted closing trading prices for stocks from three companies). • The closing stock prices should be formatted as numbers (not currency) with two decimal places and be formatting using 1000’s (thousand’s) comma separators.

APPLIED BUSINESS PROJECT 1 GUIDELINES 14 MIS 111 Online – Spring 2024 Page 14 As with all tables and figures, be sure to include an appropriate caption and citation below your comparison table (e.g., “Table 3. Industry Comparison Data” and your source citation), as shown in the style example of your table shown below: Task 3.1 Historical Stock Price Analysis Table (Reports adjusted closing price) WMT KR NYSE Closing Date Walmart Kroger NYSE Dow 30 December 31, 2018 90.13 26.45 10,101.49 January 31, 2019 92.72 27.25 10,110.95 July 31, 2019 107.95 20.57 10,121.02 August 30, 2019 112.29 23.18 10,133.15 September 30, 2019 116.63 25.23 10,136.25 October 31, 2019 115.24 24.12 10,139.05 November 29, 2019 117.04 26.92 10,126.24 December 31, 2019 117.32 28.54 10,126.86 Table 4 – Industry Stock Price Closing Price Table (Source: https://finance.yahoo.com/ Referenced 8/25/2020) Important Note - Required Caption/Reference/Title Formatting: Table 4 must include a caption, a reference to your source, and a merged cell highlighted with a background color, as shown in the “Required Table and Figure Formatting Checklist” as shown in the “General Applied Business Project Report Guidelines” Additional requirements for the formatting of each column in Table 4: [ Column 1 ] Stock Price Analysis: Dates for Monthly Historical Quotes Contains the date for each historical quote (the adjusted closing price for the last trading day of December 2022, as well as the adjusted closing price for the last trading day in each month from January 2023 to December 2023). Definition: Trading Day - A trading day is when stocks are bought and sold on the market for the stock. Since stocks are not traded on weekends or national holidays, the last trading day of each month may not be the last calendar day of the month (e.g., the last trading day in 2023 was December 29th.) Formatting: The header for this column should be “Closing Date”, and the dates should be formatted as “Month Day, Year” format (e.g., Mar 29, 2020).

APPLIED BUSINESS PROJECT 1 GUIDELINES 16 MIS 111 Online – Spring 2024 Page 16 Be sure you add appropriate captions to the X-axis (trading date) and both of the Y-axes (the primary axis for adjusted closing price for the individual company’s shares and the secondary axis for the DOW 30 or NASDAQ closing index price), as well as an appropriate title for your chart. Since the market closing prices will be significantly higher than the share price of any individual stock, you will need to use a “secondary axis” to allow you to compare the trends of each line in your graph, as described below. To add a secondary axis to your graph, select the plotted line for your market data by clicking on the plotted line in the chart, right click to select the option for “Format Data Series,” and then select “Secondary Axis”. Important Note When Creating A Secondary Axis in Excel: Online version of MS Excel does not support creating a Secondary Axis. You will need to use the installed version of MS Excel or use MS Excel on the VCAT virtual lab for this requirement. Be sure to add an axis title to your secondary axis by selecting the chart by clicking anywhere on the chart, and then click on the “Chart Elements” (box with a crosshatch “+”). The “Axis Titles” should already be selected (for your left-hand axis), so just click on the right-arrow to open the menu and then select “Secondary Vertical” to match your axis title for the primary axis title. Primary Axis Secondary Axis

APPLIED BUSINESS PROJECT 1 GUIDELINES 17 MIS 111 Online – Spring 2024 Page 17 Important Note on Task 1 Sample Figures : the items to be included for Task 1 do not match the items shown in the style sample examples Tables 1 and 2. Your report MUST ONLY include the list of items shown for Task 1 in your report. The range used for the horizontal (date) axis in your stock price graph will, by default, most likely use a continuous date range, rather than the exact closing dates of each month. Be sure to change your chart axis formatting to have the specific closing dates you listed in Task 3.1 be used for Figure 1 by using the “Format Axis” tool. To format the date axis to use the actual trading dates from your data, select the axis by clicking anywhere on the date axis (the X-axis), and right-click on the “Format Axis” option. When the menu is displayed, you should change the selection from “Automatically select based on data” to “Text axis”. Task 3 Self-Assessment Quality Review [25 points] Point Goal 0-6 points 7-12 points 13-18 points 19-25 points Assessment (Based on the specific criteria defined for each subtask) Did not attempt or incorrect content in two or more tables and/or written assessment or citations Incorrect or missing content in one or more tables and/or written assessment and citations Some incorrect content in one or more tables or written assessment and citations Materially included most or all content in tables, written assessment and citations

APPLIED BUSINESS PROJECT 1 GUIDELINES 19 MIS 111 Online – Spring 2024 Page 19 Task 4.2: The Acid Test The Acid Test (also called the Quick Ratio) examines whether a company’s short- term assets will cover its short-term liabilities. If they will not, the company may have a positive value but lack liquidity and be unable to pay its obligations when due. 𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨 𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻 = ( 𝑪𝑪𝑪𝑪𝑻𝑻𝑪𝑪 + 𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑻𝑻𝑻𝑻 𝑹𝑹𝑻𝑻𝑨𝑨𝑻𝑻𝑨𝑨𝑹𝑹𝑪𝑪𝑹𝑹𝑹𝑹𝑻𝑻 ) 𝑪𝑪𝑨𝑨𝑪𝑪𝑪𝑪𝑻𝑻𝑨𝑨𝑻𝑻 𝑳𝑳𝑨𝑨𝑪𝑪𝑹𝑹𝑨𝑨𝑹𝑹𝑨𝑨𝑻𝑻𝑨𝑨𝑻𝑻𝑻𝑻 “Cash” shown as “Cash, Cash Equivalents, and Short-term Investments in Task 4.1 (Source: https://www.investopedia.com/terms/a/acidtest.asp accessed 8/30/19) Calculate the Acid Test for your company ( show both the numeric value and your calculations ), and write a 150 word original (i.e., in your own words) analysis (range: 125 – 175 words) about financial liquidity of the company and whether you consider that there may be foreseeable changes with the company’s liquidity, as discussed in the Investopedia article. Be sure to justify your answer using one or more sources and include their URL with the date you referenced the online source(s). Task 4.3: Working Capital Ratio The working capital ratio is relatively simple, it is 𝑾𝑾𝑨𝑨𝑪𝑪𝑾𝑾𝑨𝑨𝑨𝑨𝑾𝑾 𝑪𝑪𝑪𝑪𝑪𝑪𝑨𝑨𝑻𝑻𝑪𝑪𝑹𝑹 𝑹𝑹𝑪𝑪𝑻𝑻𝑨𝑨𝑨𝑨 = 𝑪𝑪𝑨𝑨𝑪𝑪𝑪𝑪𝑻𝑻𝑨𝑨𝑻𝑻 𝑨𝑨𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻 𝑪𝑪𝑨𝑨𝑪𝑪𝑪𝑪𝑻𝑻𝑨𝑨𝑻𝑻 𝑳𝑳𝑨𝑨𝑪𝑪𝑹𝑹𝑨𝑨𝑹𝑹𝑨𝑨𝑻𝑻𝑨𝑨𝑻𝑻𝑻𝑻 Calculate the Working Capital Ratio for your company ( show both the numeric value and your calculations ), and write a 150 word original (i.e., in your own words) analysis (range: 125 – 175 words) about the state of the company with respect to the Working Capital Ratio, as discussed in the Investopedia article. Be sure to justify your answer using one or more sources and include their URL with the date you referenced the online source(s). Task 4.4: Price to Book Ratio The price to book ratio (also called the market to book ratio) is widely used. Any ratio value under 1 (one) may be indicative of an undervalued stock, meaning its book value of its assets are worth more than the market value of the company, which impacts a company’s liquidity and its ability to pay its obligations when due. 𝑷𝑷𝑪𝑪𝑨𝑨𝑨𝑨𝑻𝑻 𝑻𝑻𝑨𝑨 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑹𝑹𝑪𝑪𝑻𝑻𝑨𝑨𝑨𝑨 = 𝑴𝑴𝑪𝑪𝑪𝑪𝑾𝑾𝑻𝑻𝑻𝑻 𝑪𝑪𝑪𝑪𝑪𝑪𝑨𝑨𝑻𝑻𝑪𝑪𝑹𝑹𝑨𝑨𝑪𝑪𝑪𝑪𝑻𝑻𝑨𝑨𝑨𝑨𝑨𝑨 𝑻𝑻𝑨𝑨𝑻𝑻𝑪𝑪𝑹𝑹 𝑺𝑺𝑻𝑻𝑨𝑨𝑨𝑨𝑾𝑾𝑪𝑪𝑨𝑨𝑹𝑹𝑨𝑨𝑻𝑻𝑪𝑪 ′ 𝑻𝑻 𝑬𝑬𝑬𝑬𝑨𝑨𝑨𝑨𝑻𝑻𝑬𝑬

APPLIED BUSINESS PROJECT 1 GUIDELINES 20 MIS 111 Online – Spring 2024 Page 20 Note that the Price to Book Ratio that you calculate based on the information shown in Task 4.1 may differ from the reported Price to Book Ratio reported by financial sites, since your company’s market capitalization varies over time based on the traded share price and the number of common shares outstanding. Important: For the purposes of this task, you should base your calculation on the Market Capitalization value from obtained for Task 1.2. Be sure to use the same measures (billions, millions, thousands) for all of the used values when calculating your Price to Book Ratio. Note: The following formulas are just equivalent formulas to calculate the P/B ratio in case you prefer to use a different formula or find sources discussing them. If you want to use the traded price for one share of stock, i.e., “Share Price”, you will need to calculate the Total Stockholder Equity for one share of stock. For example, 𝑷𝑷𝑪𝑪𝑨𝑨𝑨𝑨𝑻𝑻 𝑻𝑻𝑨𝑨 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑹𝑹𝑪𝑪𝑻𝑻𝑨𝑨𝑨𝑨 = 𝑺𝑺𝑪𝑪𝑪𝑪𝑪𝑪𝑻𝑻𝑷𝑷𝑪𝑪𝑨𝑨𝑨𝑨𝑻𝑻 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑽𝑽𝑪𝑪𝑹𝑹𝑨𝑨𝑻𝑻 𝑪𝑪𝑻𝑻𝑪𝑪 𝑺𝑺𝑪𝑪𝑪𝑪𝑪𝑪𝑻𝑻 Some sources may appear to use different values, when it is simply a matter of factoring out the total number of common shares from each term, as shown below: 𝑷𝑷𝑪𝑪𝑨𝑨𝑨𝑨𝑻𝑻 𝑻𝑻𝑨𝑨 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑹𝑹𝑪𝑪𝑻𝑻𝑨𝑨𝑨𝑨 = 𝑴𝑴𝑪𝑪𝑪𝑪𝑾𝑾𝑻𝑻𝑻𝑻𝑪𝑪𝑪𝑪𝑪𝑪 𝑻𝑻𝑨𝑨𝑻𝑻𝑪𝑪𝑹𝑹 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑽𝑽𝑪𝑪𝑹𝑹𝑨𝑨𝑻𝑻 = � 𝑴𝑴𝑪𝑪𝑪𝑪𝑾𝑾𝑻𝑻𝑻𝑻𝑪𝑪𝑪𝑪𝑪𝑪 𝑵𝑵𝑨𝑨𝑵𝑵 𝑺𝑺𝑪𝑪𝑪𝑪𝑪𝑪𝑻𝑻𝑻𝑻 � � 𝑻𝑻𝑨𝑨𝑻𝑻𝑪𝑪𝑹𝑹 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑽𝑽𝑪𝑪𝑹𝑹𝑨𝑨𝑻𝑻 𝑵𝑵𝑨𝑨𝑵𝑵 𝑺𝑺𝑪𝑪𝑪𝑪𝑪𝑪𝑻𝑻𝑻𝑻 � = 𝑺𝑺𝑪𝑪𝑪𝑪𝑪𝑪𝑻𝑻𝑷𝑷𝑪𝑪𝑨𝑨𝑨𝑨𝑻𝑻 𝑩𝑩𝑨𝑨𝑨𝑨𝑾𝑾 𝑽𝑽𝑪𝑪𝑹𝑹𝑨𝑨𝑻𝑻 𝑪𝑪𝑻𝑻𝑪𝑪 𝑺𝑺𝑪𝑪𝑪𝑪𝑪𝑪𝑻𝑻 Calculate the Price-to-Book Ratio for your company ( show both the numeric value and your calculations ), and write a 150 word original (i.e., in your own words) analysis (range: 125 – 175 words) of your company’s Price-to-Book Ratio and whether it appears to be favorable. While “value investors” consider a Price-to-Book Ratio below 3 (three) to be favorable, you should make your own determination of whether this “rule of thumb” for value investors is appropriate for your company. Specifically discuss whether the company also has intangible assets or goodwill that may be artificially depressing the Price-to-Book Ratio and making the company appear to be a better value than the actual financial condition. For more information on investment use of the Price-to-Book Ratio, refer to the Investopedia. Be sure to justify your answer using one or more sources and include their URL with the date you referenced the online source(s).