Stocks Valuation

You have done a great job on this assessment thus far! All calculations are perfect and you have provided great insight into your comparison of the key stock measures. 

Please see my feedback below, then resubmit the assessment once you discuss the advantages shareholders have. Please reach out to our course tutor if you need assistance and please highlight your changes.

Keep up the great work in our course!

Dana 

Competency: evaluate the global financial environment.

Criterion: describe the advantages of stock ownership.

Distinguished

Proficient

Basic

Non-performance

Non-performance

Does not describe the advantages of stock ownership. 

Faculty comments:“

This section is missing. Going back to sherman (2011) chapter 9, what are some of the advantages/perks of being a shareholder? 

”

Criterion: calculate how much money is needed to buy a specific amount of stock.

Distinguished

Proficient

Basic

Non-performance

Distinguished

Calculates how much money is needed to buy a specific amount of stock and explains the calculations.

Faculty comments:“

You did a great job on the calculations of the amount needed to purchase 150 shares of hitech, inc. Based on the trading price and cost associated with the brokerage firm. 

”

Competency: define finance terminology and its application within the business environment.

Criterion: explain the differences between key stock market measures.

Distinguished

Proficient

Basic

Non-performance

Proficient

Explains the differences between key stock market measures.

Faculty comments:“

Very good job explaining the differences between the s&p 500 and the dow jones!  

”

Criterion: calculate the percentage one-day return in the dow jones industrial average.

Distinguished

Proficient

Basic

Non-performance

Distinguished

Calculates the percentage one-day return in the dow jones industrial average and explains the calculation. 

Faculty comments:“

Excellent job on your calculations of the dow jones' rate of return! What are some of reasons the key stock measures like s&p 500 and dow jones fluctuate up and down on a daily basis? 

”

Criterion: calculate the value of a share of stock with constant growth.

Distinguished

Proficient

Basic

Non-performance

Distinguished

Calculates the value of a share of stock with constant growth and explains the calculations. 

Faculty comments:“

Very good job on your calculations of the price of hitech's stock! How much would the price be if the required return were 10%? 

”

Criterion: calculate the value of a share of preferred stock.

Distinguished

Proficient

Basic

Non-performance

Distinguished

Calculates the value of a share of preferred stock and explains the calculations. 

Faculty comments:“

You did a great job calculating the value of hitech's stock when the required return is 4.5%! How much would the required return need to be for the value of the stock to equal $50? 

”

Criterion: calculate the price of a share of stock using a stock's earnings per share and p/e ratio.

Distinguished

Proficient

Basic

Non-performance

Distinguished

Calculates the price of a share of stock using a stock's earnings per share and p/e ratio and explains the calculations. 

Faculty comments:“

Excellent job on your calculations of hitech's stock price! How much would the stock price be if the p/e were 27.47? 

”

Competency: evaluate the financial health of an organization.

Criterion: describe the rights of a shareholder.

Distinguished

Proficient

Basic

Non-performance

Proficient

Describes the rights of a shareholder. 

Faculty comments:“

You did a very good job listing the rights of shareholders! Looking at some of major companies in the industry you work in, what are some examples of shareholders exercising these rights and what do you think the reasoning behind their action are?