FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 37

Enterprise Value? • What is the Beta? •
Was there a Stock Split,
and if so, when? • What was the closing stock price for the last 5
days? •
What was the 52 Week High for this stock? •
What is the Book Value per Share? •
What
type of rating are analysts recommending (i.e. buy, hold, etc.)? •
What is the target price analysts are predicting
for this stock? •
What is the analyst's average revenue estimate
for next year? •
What are some of the significant news items and
press releases made by the company over the last year? Explain in
700 words why you would or would not recommend investing in this
stock. •
Describe the relationship between the value of
the stock and the price to earnings ratio. • What information does
the Market Capitalization (Market Cap) and Beta provide to the
investor?
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FIN 571 Week 3 Connect Problems
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FIN 571 Week 3 Connect Problems If the Garnett Corp. has a 15
percent ROE and a 25 percent payout ratio, what is its sustainable
growth rate? 1.If the Hunter Corp. has an ROE of 15 and a payout
ratio of 18 percent, what is its sustainable growth rate 2.The most
recent financial statements for Williamson, Inc., are shown here
Assets and costs are proportional to sales. Debt and equity are not. No
dividends are paid. Next year’s sales are projected to be $8,418. What
is the external financing needed? 3.The maximum rate at which a firm
can grow while maintaining a constant debt-equity ratio is best
defined by its: 4.Financial planning, when properly executed:
5.Projected future financial statements are called: 6.Which account is
least apt to vary directly with sales? 7.Which one of the following
depicts a correct relationship? 8.One of the primary weaknesses of
many financial planning models is that they: 9.In the financial
planning model, the external financing needed (EFN) as shown on a
pro forma balance sheet is equal to the changes in assets: 10.The
external funds needed (EFN) equation projects the addition to retained