Bundle: Fundamentals of Financial Management, 14th + LMS Integrated for MindTap Finance, 1 term (6 months) Printed Access Card
14th Edition
ISBN: 9781305776494
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 9, Problem 1TCL
Estimating Exxon Mobil Corporation's Intrinsic Stock Value
Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions.
In this chapter, we described the various factors that influence stock prices and the approaches that analysts use to estimate a stock's intrinsic value. By comparing these intrinsic value estimates to the current price, an investor can assess whether it makes sense to buy or sell a particular stock. Stocks trading at a price far below their estimated intrinsic values may be good candidates for purchase, whereas stocks trading at prices for in excess of their intrinsic value may be good stocks to avoid or sell. Although estimating a stock's intrinsic value is a complex exercise that requires reliable data and good judgment, we can use the Internet to find financial data in order to arrive at a quick "back-of-the- envelope" calculation of intrinsic value.
1. For purposes of this exercise, let's take a closer look at the stuck of Exxon Mobil Corporation (XOM). Use websites such as Yahoo! Finance, Google Finance, MSN Money (www.msn.com/en-us/
| Previous Close | 73.60 |
| Open | 74.35 |
| Bid | 74.25 X 100 |
| Ask | 74.60 X 500 |
| Day's Range | 74.10-75.00 |
| 52 Week Range | 73.53 - 89.30 |
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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
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Beta
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Common Shareholders’ Equity
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Book/Share
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9.040
8.521
Q1 (Mar ’11)
2010
Net profit…
You want to evaluate the stock of a company. Answer the following questions to guide your analysis
analysis and explain what data you rely on and what you do with it?
How do you express the performance of a stock?
Based on this definition, how does an investor select the stocks in which to invest?
Chapter 9 Solutions
Bundle: Fundamentals of Financial Management, 14th + LMS Integrated for MindTap Finance, 1 term (6 months) Printed Access Card
Ch. 9.A - For a stock to be in equilibrium, what two...Ch. 9.A - If a stock is not in equilibrium, explain how...Ch. 9.A - RATES OF RETURN AND EQUILIBRIUM Stock Cs beta...Ch. 9.A - EQUILIBRIUM STOCK PRICE The risk-free rate of...Ch. 9.A - BETA COEFFICIENTS Suppose Chance Chemical Companys...Ch. 9 - It is frequently stated that the one purpose of...Ch. 9 - Is the following equation correct for finding the...Ch. 9 - Prob. 3QCh. 9 - Two investors are evaluating GEs stock for...Ch. 9 - A bond that pays interest forever and has no...
Ch. 9 - Discuss the similarities and differences between...Ch. 9 - This chapter discusses the discounted dividend and...Ch. 9 - DPS CALCULATION Warr Corporation just paid a...Ch. 9 - CONSTANT GROWTH VALUATION Thomas Brothers is...Ch. 9 - CONSTANT GROWTH VALUATION Harmon Clothiers stock...Ch. 9 - NONCONSTANT GROWTH VALUATION Hart Enterprises...Ch. 9 - CORPORATE VALUATION Smith Technologies is expected...Ch. 9 - PREFERRED STOCK VALUATION Fee Founders has...Ch. 9 - Prob. 7PCh. 9 - PREFERRED STOCK VALUATION Ezzell Corporation...Ch. 9 - PREFERRED STOCK RETURNS Bruner Aeronautics has...Ch. 9 - VALUATION OF A DECLINING GROWTH STOCK Martell...Ch. 9 - VALUATION Of A CONSTANT GROWTH STOCK A stock is...Ch. 9 - VALUATION OF A CONSTANT GROWTH STOCK Investors...Ch. 9 - CONSTANT GROWTH You are considering an investment...Ch. 9 - NONCONSTANT GROWTH Microtech Corporation is...Ch. 9 - CORPORATE VALUATION Dozier Corporation is a...Ch. 9 - NONCONSTANT GROWTH Milts Cosmetics Co.s stock...Ch. 9 - CONSTANT GROWTH Your broker offers to sell you...Ch. 9 - NONCONSTANT GROWTH STOCK VALUATION Taussig...Ch. 9 - CORPORATE VALUATION Barrett Industries Invests a...Ch. 9 - CORPORATE VALUE MODEL Assume that today is...Ch. 9 - NONCONSTANT GROWTH Assume that it is now January...Ch. 9 - Comprehensive/Spreadsheet Problem NONCONSTANT...Ch. 9 - Prob. 23ICCh. 9 - Estimating Exxon Mobil Corporation's Intrinsic...Ch. 9 - Prob. 2TCLCh. 9 - Estimating Exxon Mobil Corporation's Intrinsic...Ch. 9 - Prob. 4TCLCh. 9 - Estimating Exxon Mobil Corporation's Intrinsic...Ch. 9 - Prob. 6TCLCh. 9 - Prob. 7TCLCh. 9 - Prob. 8TCLCh. 9 - Prob. 9TCLCh. 9 - Prob. 10TCL
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