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)   .

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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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%
Return on equity 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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