FINANCIAL PLANNING CASE Research Information Available from Value Line This chapter stressed the importance of evaluating potential investments . Now it's your turn to try your skill at evaluating a potential investment in the Dollar Tree Corporation. Assume pany. To help you evaluate this potential investment, carefully examine Exhibit 14-7, which reproduces the research report on Dollar Tree from Value Line. The report was published in 2. What other investment information would you need to evaluate Dollar Tree's common stock? Where would you obtain this information? 3. On Wednesday, March 23, 2016, Dollar Tree's common stock was selling for $79 a share. Using the Internet, determine the current price for a share of Dollar Tree's common stock. Based on this information, would your investment have been profitable if you had purchased the common stock for 579 a share? (Hint: Dollar Tree's stock symbol is DLTR.) 4. Assuming you purchased Dollar Tree's stock on March 23, 2016, and based on your answer to question 3. would you want to hold or sell your Dollar Tree stock? Explain your answer. January 2016. Questions 1. Based on the research provided by Value Line, would you buy Dollar Tree's stock? Justify your answer. 495 EXHIBIT 14-7 Value Line report for the Dollar Tree Corporation DOLLAR TREE NDO-OLTR TELINESS RECENT C 76.89 Rano 2347 ME 143 89 VALUE LINE 2140 TY ONCAL 3 TRO ON MAMIASON op. 0 1.261 NODI 2018 2 HAM 2000 2001 2002 2003 2004 2002 00 se 22:40 15. 40 12 708181 2011 31 ** 3:28 261 55 22 30 31 2.00 213 na 2 224 12 11 112 2 1 By There CURIAL STRUCTURES Du Dein 5 200 MRM 12.0 TS 0349 12:00 A6 Didelio SSC 2222 26 IRRORLOG C. ME 2100 25000 200 m 7723 WRITAR HUN 2 CURRENT POSITION 8 M 200022 ML 22 212 30 O De ww w 232 3 8 22 Det Puri a lot of more in Dollar Tree's on the number of FlyDollar location S 2015 results. That reflects the Family Progress is being made in the impor 90 98 Dollar merger, numerous changes in tant supply chain and shared sevices 330 rebarvering stones, accounting adjust aren. Over the company will be D. ments, clearance markdowns and store able to supply merchand tomat 20 cannibalization, etc. Therefore, we suggestion centens to both the Dollar Tree and paying attention to the company's com Family Dochains This project with Dr. ments about its 2016 prospects during the pilot facilities becoming persona 29 March 1st 2016 caminos conference call 2016 third quarter has to 2 223405 term cost benefits A, OLTR reducing 20000 Hz i M40 Customers need doller stores. Do costs in its shared mene 620 Tree's typical middle-to-tower income customers are under pressure from higher combining back office functions for bo BAN rents and healthcare costs. Thus, weer chand over the share-oncep AM gration will include human 1 peet them to continue shopping at both Dollar Tree and Family Dollar locations nance Information technology and 10 0 Dollar Tree has significant room for segic planning and we This issue has worth 3-4 year 20 TH store expansion. On October 31, 2015 the company had 5.54 units including appreciation on These DURYS en 205. in prince Canadian stores. The acquired Family three months agoThe cession of 30 Dollar's More count was 8.397. The NOGAVONS Company's aim is to increase Dollar Tree's confidence investors have the company The shares have reset SOON HONGID of the trees stores, including to Canadian locations since the end Recent succes includes content creases in store meaning to ension, and there che Jerome Kaplan Jorwery 2, 2015 09 have Family Dolar's polls to grow store count to 12 000 Overall, we believe the combined company wit expand its locations annual in focal 2016 though management has indicated that will put back 0. org BA 01 New York The Weine. 200 FINANCIAL PLANNING CASE Research Information Available from Value Line This chapter stressed the importance of evaluating potential investments . Now it's your turn to try your skill at evaluating a potential investment in the Dollar Tree Corporation. Assume pany. To help you evaluate this potential investment, carefully examine Exhibit 14-7, which reproduces the research report on Dollar Tree from Value Line. The report was published in 2. What other investment information would you need to evaluate Dollar Tree's common stock? Where would you obtain this information? 3. On Wednesday, March 23, 2016, Dollar Tree's common stock was selling for $79 a share. Using the Internet, determine the current price for a share of Dollar Tree's common stock. Based on this information, would your investment have been profitable if you had purchased the common stock for 579 a share? (Hint: Dollar Tree's stock symbol is DLTR.) 4. Assuming you purchased Dollar Tree's stock on March 23, 2016, and based on your answer to question 3. would you want to hold or sell your Dollar Tree stock? Explain your answer. January 2016. Questions 1. Based on the research provided by Value Line, would you buy Dollar Tree's stock? Justify your answer. 495 EXHIBIT 14-7 Value Line report for the Dollar Tree Corporation DOLLAR TREE NDO-OLTR TELINESS RECENT C 76.89 Rano 2347 ME 143 89 VALUE LINE 2140 TY ONCAL 3 TRO ON MAMIASON op. 0 1.261 NODI 2018 2 HAM 2000 2001 2002 2003 2004 2002 00 se 22:40 15. 40 12 708181 2011 31 ** 3:28 261 55 22 30 31 2.00 213 na 2 224 12 11 112 2 1 By There CURIAL STRUCTURES Du Dein 5 200 MRM 12.0 TS 0349 12:00 A6 Didelio SSC 2222 26 IRRORLOG C. ME 2100 25000 200 m 7723 WRITAR HUN 2 CURRENT POSITION 8 M 200022 ML 22 212 30 O De ww w 232 3 8 22 Det Puri a lot of more in Dollar Tree's on the number of FlyDollar location S 2015 results. That reflects the Family Progress is being made in the impor 90 98 Dollar merger, numerous changes in tant supply chain and shared sevices 330 rebarvering stones, accounting adjust aren. Over the company will be D. ments, clearance markdowns and store able to supply merchand tomat 20 cannibalization, etc. Therefore, we suggestion centens to both the Dollar Tree and paying attention to the company's com Family Dochains This project with Dr. ments about its 2016 prospects during the pilot facilities becoming persona 29 March 1st 2016 caminos conference call 2016 third quarter has to 2 223405 term cost benefits A, OLTR reducing 20000 Hz i M40 Customers need doller stores. Do costs in its shared mene 620 Tree's typical middle-to-tower income customers are under pressure from higher combining back office functions for bo BAN rents and healthcare costs. Thus, weer chand over the share-oncep AM gration will include human 1 peet them to continue shopping at both Dollar Tree and Family Dollar locations nance Information technology and 10 0 Dollar Tree has significant room for segic planning and we This issue has worth 3-4 year 20 TH store expansion. On October 31, 2015 the company had 5.54 units including appreciation on These DURYS en 205. in prince Canadian stores. The acquired Family three months agoThe cession of 30 Dollar's More count was 8.397. The NOGAVONS Company's aim is to increase Dollar Tree's confidence investors have the company The shares have reset SOON HONGID of the trees stores, including to Canadian locations since the end Recent succes includes content creases in store meaning to ension, and there che Jerome Kaplan Jorwery 2, 2015 09 have Family Dolar's polls to grow store count to 12 000 Overall, we believe the combined company wit expand its locations annual in focal 2016 though management has indicated that will put back 0. org BA 01 New York The Weine. 200