4. Key performance measures Measuring Stock Performance An informed and prudent Investor uses a variety of measures such as financial rations, book value, earnings per share, return on equity etc. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what do they mean. Based on the information shown in the following table, answer the following questions to assess the worthiness of Electrin stock as an investment. Electrin Stock Data (Current and Historical) 2:12PM EDT Aug 16, 2011 Price 537.07 USD +10.21 (+1.94) Change Mit cap Div/yield 173.48 Shares 322.89 Beta 1.13 Book/share 161.128 EPS 28.25 (Millions of Dollars) Total Assets Total Liabilities Preferred Shareholder's Equity Common Shareholder's Equity Shares Outstanding (Millions) Book/Share 12/2010 12/2009 12/2008 57,851 40,497 20,178 11,6104,4933,529 12 1 0 46,229 35,994 16,640 318 113.189 69.333 318 240 2010 Q1 (Mar '11) 27.75% 19.93% Net profit margin Return on equity 29.01% 20.68% One of the most important features of a stock is its book value. The book value per share of Electrin's stock for the year 2010 was equal to Looking at the you can see that this stock is relatively volatile than the market as a whole. Based on the given price and you can determine that ElecTrin's P/E ratio is equal to