# Explain the relationship between SUE and fundamental security analysis

*label*Social Science

*timer*Asked: Feb 24th, 2014

**Question description**

- What does the auditor's report signify about financial statements?

- Explain the relationship between SUE and fundamental security analysis.

- Use the chart below and write the calculations that demonstrate the values requested.

Combining information from the S&P reports and some estimated data, the following calendar-year data, on a per-share basis, are provided: - Calculate the D/E, ROE, and TR for 2002, 2003, and 2004. (Use the average of the low and high prices to calculate TRs.)
- Show that from 2000 through 2004 the per annum growth rate in dividends was 6.9 percent and for earnings was 8.2 percent.
- Using the current price of $47, with estimated earnings for 2005 of $6.75, show that the P/E would be evaluated as 6.96.
- On the basis of the annual average P/E ratios shown above and your estimate in Problem c, assume an expected P/E of 7. If an investor expected the earnings of GF for 2005 to be $7.50, show that the intrinsic value would be $52.50.

- Describe a bar chart and a point-and-figure chart.