• Case Problem 8.2 B 1-2

Because of several intrinsic and market factors, Marc feels that 25% is a viable figure to use for a desired rate of return.

  1. Using the 25% rate of return and the forecasted figures you came up with in question a, compute the stock’s justified price.
  2. If C&I is currently trading at $32.50 per share, should Marc consider the stock a worthwhile investment candidate? Explain.
  • Case Problem 9.2 A-C
  1. Based on the data presented in the table, calculate a value (where appropriate) for periods 1 through 5, for each of the four measures listed above. Chart your results, where applicable.
  2. Discuss each measure individually and note what it indicates for the market, as it now stands. Taken collectively, what do these four measures indicate about the current state of the market? According to these measures, is this a good time for Deb to consider getting into the market, or should she wait a while? Explain.
  3. Comment on the time periods used in the table, which are not defined here. What if they were relatively long intervals of time? What if they were relatively short? Explain how the length of the time periods can affect the measures.