An informed and prudent investor uses a variety of measures such as financial rations, book value, eamings 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. Based on the information shown in the following table, answer the following questions to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 1:18PM EDT Price Change Mkt cap Div/yield Shares Beta Book/share P/E ratio Aug 16, 2011 18.85 USD +0.64 (+3.51%) 147.18 0.20/4.24 8,012 0.70 11.335 17 (Millions of Dollars) Total Assets Total Liabilities Preferred Shareholder's Equity Common Shareholder's Equity Shares Outstanding (Millions) Book/Share 7 12/2010 12/2009 195,014 195,949 107,201 122,935 52 6 1 87,761 72,953 8,012 8,070 ? 9.040 12/2008 111,148 53,592 3 57,483 6746 8.521 Q1 (Mar '11) Net profit margin Return on equity 15.24% 11.60% 2010 12.24% 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 you can see that this stock is relatively volatile than the market as a Looking at the whole. You can see from the net profit margin that Verticon's control over its costs has since 2010. You can tell based on the ROE that from the equity-holder's perspective, the overall profitability of the firm has since 2010. An informed and prudent investor uses a variety of measures such as financial rations, book value, eamings 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. Based on the information shown in the following table, answer the following questions to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 1:18PM EDT Price Change Mkt cap Div/yield Shares Beta Book/share P/E ratio Aug 16, 2011 18.85 USD +0.64 (+3.51%) 147.18 0.20/4.24 8,012 0.70 11.335 17 (Millions of Dollars) Total Assets Total Liabilities Preferred Shareholder's Equity Common Shareholder's Equity Shares Outstanding (Millions) Book/Share 7 12/2010 12/2009 195,014 195,949 107,201 122,935 52 6 1 87,761 72,953 8,012 8,070 ? 9.040 12/2008 111,148 53,592 3 57,483 6746 8.521 Q1 (Mar '11) Net profit margin Return on equity 15.24% 11.60% 2010 12.24% 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 you can see that this stock is relatively volatile than the market as a Looking at the whole. You can see from the net profit margin that Verticon's control over its costs has since 2010. You can tell based on the ROE that from the equity-holder's perspective, the overall profitability of the firm has since 2010
