1. FIN3013
Lab #3

2. Reviewing Assignment #2
Which companies had ROE
Less than 10%?
Between 10% and 15%?
Between 15% and 20%?
Between 20% and 25%
Greater than 25%?
What were some of your observations?
UTSA College of Business
FIN3013Lab

3. UTSA College of Business
Assignment #3 Goals
Calculate monthly returns for your stock and for the S&P500
Plot a graph
Write a professional memo reporting results
UTSA College of Business
FIN3013Lab

4. Looking at Price Changes Can Be Deceiving
CCU
Jan 1--$56.98
Feb 1--$55.25
Loss $1.73
Hypothetical Company--Road Runner
Jan 1--$200
Feb 1--$195
Loss $5
UTSA College of Business
FIN3013Lab

5. Percentage Returns Allows Us To Compare Investments
CCU
(P2-P1)/P1 =
( )/56.98=
or –3.04%
Roadrunner
(P2-P1)/P1 =
( )/200=
or –2.5%
UTSA College of Business
FIN3013Lab

6. $10,00 Invested In Each Stock
CCU
(10,000)*(-.0304)=
Loss of $304
Roadrunner
(10,000)*(-.025)
Loss of $250
UTSA College of Business
FIN3013Lab

7. UTSA College of Business
For Your Company
Calculate monthly returns
Your Stock
S&P500
Plot Graph
Date on X axis
Returns for your stock and S&P500 on Y axis
UTSA College of Business
FIN3013Lab

8. UTSA College of Business
Memo
Brief description of your graph
One observation or insight from your graph
Use proper formatting
Content and presentation are important
UTSA College of Business
FIN3013Lab

9. UTSA College of Business
Next Class (Lab #4)
Assignment #3 Due
Quiz #1
Calculating percentage returns
Financial Statement Analysis
UTSA College of Business
FIN3013Lab

10. UTSA College of Business
QUESTIONS?
UTSA College of Business
FIN3013Lab