# Accounting and Finance( stock analysis) Essay Example

Case study 1

 Date of Last Price 13/04/17 Last Price (AUD) Shares Outstanding (M) Market Cap (B AUD) Earnings Per Share (AUD) (TTM) Current P/E Ratio (TTM) Dividend (AUD) (TTM) Current Dividend Yield (%)
 Definition/Explanation Last Price The latest price of a stock Bid Price The price that a buyer/investor is willing to pay Ask Price The price that the company is willing to accept Shares Outstanding The total number of a company’s shareholders Market Capitalisation The total market value of a company’s outstanding shares A measure of how volatile a portfolio is compared to the overall market Earnings Per Share (TTM) A portion of the company’s profit allotted to each outstanding share Current P/E Ratio (TTM) A measure of the market share price relative to the earnings per share Dividend Per Share (TTM) Amount paid to investors for each stock owned Current Dividend Yield (%) The amount paid out by a company in form of dividends in a year relative to the share market price

Case study 2

HPR = (PE – PB + D) / PB

2010 HPR = (5.91 – 4.00 + 0.28) / 4.00 = 54.75%

2011HPR = (6.47 – 5.91 + 0.33) / 5.91 = 15.06%

2012HPR = (9.48 – 6.47 + 0.36) / 6.47 = 52.09%

2013HPR = (10.51 – 9.48 + 0.4) / 9.48 = 15.08%

2014HPR = (10.56 – 10.51 + 0.41) / 10.51 = 4.38%

2015HPR = (15.46 – 10.56 + 0.41) / 10.56 = 50.28%

Expected Return = Sum of Returns / Time

ARB Expected Return = (54.75 + 15.06 + 52.09 + 15.08 + 4.38 + 50.28) / 6

ARB Expected Return = 31.94%

Risk = Standard deviation

Variance = ((54.75-31.94)^2 + (15.06-31.94)^2 + (52.09-31.94)^2 + (15.08-)^2 + (4.38-31.94)^2 + (50.28-31.94)^2) / 6 = 433.33

Risk = Standard deviation = 20.81 = 32.11%

Case study 3 = 1.05

 2009/2010 2014/2015 Net Profit Margin Asset Turnover Ratio Leverage Ratio Net Debt to Equity Ratio Return on Equity

The additional \$50 million loan would increase the debt component. Therefore, the 2014/15 Return on Equity and the Net Debt to Equity Ratios would be higher.

The additional \$50 million sale of new shares to the public would increase the equity component. Therefore, the 2014/15 Return on Equity and the Net Debt to Equity Ratios would be lower.