No checklist can serve as a foolproof guide for choosing a common or preferred stock. However, the questions included in this worksheet will help you evaluate a potential stock investment. Use stock websites on the Internet and$/$or library materials to answer these questions about a corporate stock that you believe could help you achieve your investment goalsEvaluating Corporate Stocks Worksheet.

Explain the relationship between corporate earnings and a stock's market value.

write the formula for the following stock calculations, and then describe how this calculation could help you

make a decision to buy or sell a stock.

Based on current economic and business trends, select a company with potential growth over the next few

years. Use the material in this chapter, on line research, library resources to conduct research for this

company.Use the form below to capture information about this stock. Evaluating Corporate Stocks Worksheet.

Explain the relationship between corporate earnings and a stock$$s market value.

write the formula for the following stock calculations, and then describe how this calculation could help you make a decision to buy or sell a stock.

Calculation What is the Formula? Why is the Calculation Useful?

Earnings per share

Price$-$earnings $($PE$)$ ratio

Dividend yield

Total return

Beta

Book value