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I am really struggling with this assignment so if anyone could please help it would be greatly appreciated. ASSIGNMENT 08 F04 Investments Directions: Be sure
I am really struggling with this assignment so if anyone could please help it would be greatly appreciated.
ASSIGNMENT 08 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: Year 1999 2000 2001 2002 2003 2004 2005 Price Range Low High $26.5-$35.3 28.3-37.0 23.5-34.3 27.8-35.0 29.0-47.8 36.6-53.5 Earnings Dividends Book Value (D/E) 100(%) Annual Avg. P/E $4.56 5.02 5.14 4.47 5.73 6.75 6.75 $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 37.7 38.8 42.8 7.0 6.2 5.8 7.7 6.8 ROE = E/Book TR% 17.6% 17.3 16.0 a. Calculate the D/E, ROE, and TR for 2002, 2003, and 2004. (Use the average of the low and high prices to calculate TRs.) b. Show that from 2000 through 2004 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 2005 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 2005 to be $7.50, show that the intrinsic value would be $52.50. 4. Describe a bar chart and a point-and-figure chart and give the purposes of each. Grading Rubric Please refer to the rubric below for the grading criteria for this assignmentStep by Step Solution
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