FINANCE:
Security Analysis and Portfolio
PART I
Review the attached file, Special Valuation Problems and
Solutions document.
This document is a series of CFA level problems and
solutions that when studied can promote deeper understanding on the nuances of
Valuation. Go through it and provide annotative comments about how the subject
matter is either similar or different from the textbook format. Additionally,
what do you view as the principal takeaway from these similarities or
differences? Provide a clear answer.
PART II
Given the following information, calculate: (a) current
ratio, (b) quick/acid-test ratio, (c) Total debt or leverage ratio, (d) Return
on Assets, (e) Net Margin, (f) Return on Equity, (g) Asset Turnover, (h)
Earnings Retention Ratio
SUMMARY BALANCE SHEET
ASSETS
LIABILITIES & SH EQUITY
Cash & Equivalents $2,000 Accounts Payable $6,000
Accounts Receivable 7,000
Notes Payable 4,000
Inventory
5,000 Current
Liabilities $10,000
Current Assets
$14,000
Prepaid Expense
$2,000 Long-term Debt $9,000
P, P & E
(net) $20,000 SH Equity $17,000
Total Assets $36,000 Total Liab & SH Eq $36,000
SUMMARY OPERATING PERFORMANCE
Sales $50,000
Net Income 5,400
Dividends
Paid 1,350
