ACTG 3000 Lecture Notes - Lecture 2: Cash Flow Statement, Operating Cash Flow, Transaction Cost
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The goal of this assignment is to apply the fundamental analysis tools that we have studied in chapter 6. We will use these tools to analyze a firm"s fundamentals and then come up with a trading strategy. (you"ll apply that strategy at www. stocktrak. com/) First choose a publicly traded company that you would hypothetically want to analyze/track/invest in. Using a financial news website such as the following, look up the financial statements of that company. (there are other places to look; it"s your choice. ) http://moneycentral. msn. com/investor/invsub/results/statemnt. asp or www. valueline. com (when on a campus computer) Using the constant perpetual dividend growth model, the residual income. Model, the p/e ratio, the p/cf ratio, and the p/s ratio, perform valuations on or predictions of the firm"s stock price. For the constant dividend growth model, find current dividends per share, d(0), from the income statement. Estimate the dividend growth rate, g, or find it on the ratios/statements pages.