An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity etc. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what do they mean. Use the following tables to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 2:12PM 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 PE ratio 17 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% Return on equity 11.60% 9.30% 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 . Verticon’s book value per share has been since 2008, a fact that reflects on the company’s overall growth. Based on the given price and , you can determine that Verticon’s EPS is equal to .
An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity etc. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what do they mean. Use the following tables to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 2:12PM 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 PE ratio 17 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% Return on equity 11.60% 9.30% 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 . Verticon’s book value per share has been since 2008, a fact that reflects on the company’s overall growth. Based on the given price and , you can determine that Verticon’s EPS is equal to .
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity etc. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what do they mean.
Use the following tables to assess the worthiness of Verticon stock as an investment.
Verticon Stock Data (Current and Historical)
|
2:12PM 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 |
| PE ratio | 17 |
|
|
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% |
| Return on equity | 11.60% | 9.30% |
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 .
Verticon’s book value per share has been since 2008, a fact that reflects on the company’s overall growth.
Based on the given price and , you can determine that Verticon’s EPS is equal to .
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