FINCB 571: Comp 1 Reflection

Primary and Secondary Markets

You are a new economist for a major financial institution, and youve been invited to speak as a guest lecturer for a Freshman Finance course at the local university. Share how you would describe the overall purpose and mechanics of both primary and secondary markets. How would you explain the way the performance of your company is influenced by the activity of the markets you described?

ROE and EPS

You are a research analyst for a publicly traded company, and youve been assigned to give a presentation on how a company uses performance metrics in corporate valuation. Think about how you would present return on equity (ROE) and earnings per share (EPS) to a group of investors or senior management.

• Explain the use of ROE and EPS in evaluating the value of a company. Include how to calculate ROE and EPS.
• Why is understanding ROE and EPS important to a companys value?
• Share an example of a company whose ROE and EPS you calculated.
• What do these results say about the company?