Due Monday by $4$:$15$pm Points $1$ Submitting a text entry box, a website url, or a file upload Available Mar $9$ at $12$ am $-$ Apr $13$ at $11$:$59$pm

Introduction to Investments

Case $14$: Fundamental Analysls

Valuing stocks is more than just a collection of arbitrary opinions in finance magaxines and Web sites. Valuing common stocks involves predicting the future with consideration given to accounting statements and other economic information. Fundamental analysis might lead someone to believe a particular stock is "cheap" or "rich". But it is just not that simple. The text says to be careful and I agree.

For this case I want you to go to https:iffnance.yahoo com$/B$ and look up the stock price and dividend for OGGE $($symbol OGR$)$ For the sake of

data$=$yield. and look up the yield on a $20$ year treasury this is the discount rate you should use. Use the formula $6\mathrm{.}4$ on page $177$ and the "olt quick and dirly rule of thumb" to determine what $k$ should be in your formula. How does your stock price compare with the achual stock price?

Peading Assignment:

pp$.$ Chapter $6$

Questions to Consider:

What types of companies are ideal for the constant perpetual growth model?

From the exercise in this case, how would changes in aswumptions impact your outcomes?

Is the exercise usefuf in determinine whether stack puices are Nigh or low?

What kinds of information do investors need to find in onder to une the comstant perpetual erowth model?

Where can they find this information? input OGE for information.

What is a PEG ratio and what is it for OGE? What kind of company does it show OGE to be$?$ hitte lememponerchinge comadosand?

Peg ratiohtm

$9.$ What is Beta and what is it for OGE?

$10.$ What is OGF's discount rate given a $90$ day treasury of $4\mathrm{.}53?$ See pp$.185$ for how to factor this number.

$11.$ What is meant by the term price$-$earnings ratio $($P$/$E$)?$

$12.$ What is the price$-$cash flow ratio $($P$/$CF$)?$

$13.$ What is the price$-$sales ratio $($P$/$S$)?$

$14.$ What is the price$-$book ratio $($P$/$B$)?$

$$