Total cost of accounts
Value of accounts
Difference $
Difference %
Stock Name
Stock 1
BAC-PL
Stock 2
TSLA
Stock 3
GOOGLE
Stock Index Traded (NSYE, NASDAQ)
0.95
0.029
0.019
Symbol
B.P
T
G
Quantity
686
21
14
BAC-PL – Bank of America
S10,000 dollar
S10,000/S14.56 = 686 shares
Company – industry – sector
Despite of this company having some positive earnings per share for the past years with only one negati
TSLA
S5000
S5000/S240.76 = 21 shares
Their sales are relatively good compared to other companies in the sector. Moreover, this is not just a pr
GOOGLE
$10,000
S10,000/S707.88 = 14 shares
This company has a good past since it has been experiencing profits since 2014 with no indication of neg
Reference
http://www.reuters.com/finance/personal-finance
Total cost of accounts
Value of accounts
Difference $
Difference %
Purchase Price Per Share
$14.58
$238.10
$714.23
$20,165.00
$26,400.00
$6,235.00
30.92%
Trade Fees
$70
$45
$50
Total Cost (Purchase Price + Fees)
$10,070
$5,045
$5,050
Current Quote
$8,000
$4,500
$7,200
he past years with only one negative in the past two years, it is undervalued. They expect an increase in revenue from 7%.
ctor. Moreover, this is not just a present company but a future one and there is release of a new model. Thus, this company c
nce 2014 with no indication of negative earnings per share. They are engaged in buying technology of other companies since t
Market Value Gain/Loss ($)
$12,000
$1,930
$7,500
$2,455
$6,900
$1,850
Gain/Loss (%)
19.16%
48.66%
36.63%
an increase in revenue from 7%.
a new model. Thus, this company can be a good long term investment.
chnology of other companies since they are still developing. They experience a LT growth rate of 14.7%.
BAC-PL – Bank of America
S10,000 dollar
S10,000/S14.56 = 686 shares
Company – industry – sector
Despite of this company having some positive earnings per share for the past years with only
one negative in the past two years, it is undervalued. They expect an increase in revenue from
7%.
TSLA
S5000
S5000/S240.76 = 21 shares
Their sales are relatively good compared to other companies in the sector. Moreover, this is not
just a present company but a future one and there is release of a new model. Thus, this
company can be a good long term investment.
GOOGLE
$10,000
S10,000/S707.88 = 14 shares
This company has a good past since it has been experiencing profits since 2014 with no
indication of negative earnings per share. They are engaged in buying technology of other
companies since they are still developing. They experience a LT growth rate of 14.7%.
Reference
http://www.reuters.com/finance/personal-finance
Week 8 Stock Journal
George Geysimonyan
Professor Jason Powers
5/24/17
Stock Journal | Trading Plan:
Reason for trading
I am trading in order to gain profits and expand the market share through investing in publicly
traded firms that have strong working capital and great profit margins.
My Approach
I will be investing an amount of $25,000 across the three companies listed below;
Kohl’s Corporation NYSE KSS to the tune of $10,000
Target Corporation NYSE: TGT to the tune of $10,000
PepsiCo, Inc. NYSE: PEP to the tune of $5,000
My Objectives
•
Based on the Newyork Stock Exchange as of 24/05/2017 at 08:22 AM, Kohl’s
Corporation KSS stock was at $37.79 USD per share. (This means that I will be able to
purchase 264 shares at $37.79 = $9,976.56)
•
Based on the Newyork Stock Exchange as of 24/05/2017 at 08:29 AM, Target
Corporation TGT stock was at $54.49 USD per share. (This means that I will purchase
183 shares at $54.49 = $9,971.67)
•
Based on the Newyork Stock Exchange as of 24/05/2017 at 08:43 AM, PepsiCo, Inc.
PEP stock was priced at $115.05 USD per share. (I can therefore purchase 43 shares at
$115.05 = $4,947.15).
Total: $24,895.38
The reason for investing in the companies:
According to the Kohls 2016 Annual Report, the company’s total current assets were
valued at $5.08 Billion while its total current total liabilities were $2.71 Billion. This gives an
accounting ratio of 1.87:1 for the Kohl’s Corporation regarding its total current assets to total
current liabilities. This is an indication that the assets of the company are strong while the
liabilities are low, a clear indication that Kohl’s Corporation has a strong profitability.
According to the Target Corps’ Five-Year Dividend History, the firm has significantly
grown in the fields of dividends and the year-end yields percentage. The dividend history
indicates that the amount of dividends payable had increased significantly from $0.25 in 2011 to
$0.56 in 2016. Despite the fact that the company’s shares haven’t been split since the year 2000,
the financial performance of the firm is strong.
PepsiCo, Inc., on the other hand, is one of the leading beverage companies in the world
alongside Lipton, Sierra Mist, Mountain Dew, and 7UP. Additionally, the company has clinched
the snack market with Tropicana, Quaker, and Frito-Lay food product. I have a strong belief in
the brand, being one of the loyal customers. Moreover, according to the company’s balance
sheet, its total assets are valued at $66.7 Billion with a low amount of liabilities totaling at $17.6
Billion. This is a clear indication that the company has a strong financial stamina.
References
https://www.nyse.com/quote/XNYS:KSS
https://www.nyse.com/quote/XNYS:TGT
https://www.nyse.com/quote/XNYS:PEP
1
George Geysimonyan
Week 10 Homework
Professor Jason Powers
Fin 100: Principles of Finance
05/30/17
2
a) Current ratio
This measures the ability of a company to pay current liabilities with current assets
Current ratio is calculated using the following formula:
Current Assets
Current Liabilities
Current asset = 2015-23031000
Current liabilities-17578000
23031000÷17578000=1.3102
Current Ratio =
b) Return on assets
= net income/ average total assets and expressed as a percentage
2015- Net income-5452000
Average total assets-$66700000000
5452000÷66700000000=0.00008×100=0.008
c) ROE =
Net income÷ total assets × total assets ÷ shareholders’ equity
=5452000÷66700000000×66700000000÷12068000=0.4518
d) Debt/equity ratio
= total liabilities
Shareholders’ equity
17600000000÷12068000=1458.4
What inferences can you draw from the ratios?
1) The current ratio- since the current assets are more than the current liabilities, it shows
that the business is healthy and it can meet its liabilities.
2) Return on assets- shows the efficiency of the firm, according to the company the
efficiency is low. The company is not fully utilizing its total assets.
3) Return on equity- the shareholders’ investment is generating a good income.
4) Debt/equity ratio- the company is using a lot of debts to finance its assets
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