# Intrinsic

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

2. Explain relationship between SUE and fundamental security analysis

3. Use the chart below and write the calcualation that demenostrate data, the following calendar -year data, on a per share basis, are provided: THE CHART HAS BEEN ATTACHED FOR YOUR REFERENCE.

a. Calculate the D/E, ROE, AND TR for 2002, 2003, and 2004.(Use the average of the low and high prices to calculate TRs.(20point)

b. Show that from 200 through 2004 the per annum growth rate in dividends was 6.9 percent and for earning was 8.2 percent.(20points)

c. 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.(10points)

d. 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 $52.20(10points)

4. Describe a bar chart and a point-figure chart. (20pints)

2. Explain relationship between SUE and fundamental security analysis

3. Use the chart below and write the calcualation that demenostrate data, the following calendar -year data, on a per share basis, are provided: THE CHART HAS BEEN ATTACHED FOR YOUR REFERENCE.

a. Calculate the D/E, ROE, AND TR for 2002, 2003, and 2004.(Use the average of the low and high prices to calculate TRs.(20point)

b. Show that from 200 through 2004 the per annum growth rate in dividends was 6.9 percent and for earning was 8.2 percent.(20points)

c. 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.(10points)

d. 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 $52.20(10points)

4. Describe a bar chart and a point-figure chart. (20pints)

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