F04 Investments Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages in length; refer to the "Format Requirements" page for specific format requirements. Give real-world examples whenever possible. Please show all of your work, including all formulas used, if the question requires calculations. 1. Discuss what the auditor's report signifies about financial statements. 2. Explain the purpose and implications of a fundamental security analysis. 3. Use the chart below and write the calculations that demonstrate the values requested. Combining information from the S&P reports and some estimated data, the following calendar-year data, on a per-share basis, are provided: Dividends Book Value (D/E) 100(%) Annual Avg. P/ E | 7 Year Price Earnings Range Low High | 2009 | $26.5-$35.31 $4.56 2010 28.3-37. 0 5 .02 2011 23.5-34.3 5.14 2012 27.8-35.0 4.47 2013 29.0-47.8 5.73 2014 36.6-53.5 6.75 | 2015 6.75 ROE = E/Book TR% 17.6% 17.3 | 16.0 7 37. 38.8 42.8 $1.72 1.95 2.20 2.20 2.30 2.40 2.60 $25.98 29.15 32.11 30.86 30.30 39.85 44.00 .0 6.2 5.8 7.7 6.8 T a. Calculate the D/E, ROE, and TR for 2012, 2013, and 2014. (Use the average of the low and high prices to calculate TRs.) b. Show that from 2010 through 2014 the per annum growth rate in dividends was 6.9 percent and for earnings was 8.2 percent. c. Using the current price of $47, with estimated earnings for 2015 of $6.75, show that the P/E would be evaluated as 6.96. d. On the basis of the annual average P/E ratios shown above and your estimate in Problem c, assume an expected P/E of 7. If an investor expected the earnings of GF for 2015 to be $7.50, show that the intrinsic value would be $52.50. Describe a bar chart and a point-and-figure chart and give the purposes of each. F04 Investments Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages in length; refer to the "Format Requirements" page for specific format requirements. Give real-world examples whenever possible. Please show all of your work, including all formulas used, if the question requires calculations. 1. Discuss what the auditor's report signifies about financial statements. 2. Explain the purpose and implications of a fundamental security analysis. 3. Use the chart below and write the calculations that demonstrate the values requested. Combining information from the S&P reports and some estimated data, the following calendar-year data, on a per-share basis, are provided: Dividends Book Value (D/E) 100(%) Annual Avg. P/ E | 7 Year Price Earnings Range Low High | 2009 | $26.5-$35.31 $4.56 2010 28.3-37. 0 5 .02 2011 23.5-34.3 5.14 2012 27.8-35.0 4.47 2013 29.0-47.8 5.73 2014 36.6-53.5 6.75 | 2015 6.75 ROE = E/Book TR% 17.6% 17.3 | 16.0 7 37. 38.8 42.8 $1.72 1.95 2.20 2.20 2.30 2.40 2.60 $25.98 29.15 32.11 30.86 30.30 39.85 44.00 .0 6.2 5.8 7.7 6.8 T a. Calculate the D/E, ROE, and TR for 2012, 2013, and 2014. (Use the average of the low and high prices to calculate TRs.) b. Show that from 2010 through 2014 the per annum growth rate in dividends was 6.9 percent and for earnings was 8.2 percent. c. Using the current price of $47, with estimated earnings for 2015 of $6.75, show that the P/E would be evaluated as 6.96. d. On the basis of the annual average P/E ratios shown above and your estimate in Problem c, assume an expected P/E of 7. If an investor expected the earnings of GF for 2015 to be $7.50, show that the intrinsic value would be $52.50. Describe a bar chart and a point-and-figure chart and give the purposes of each