1. Show competency in the basics of analyzing problems and making decisions
2. Employ relevant and legitimate information literacy to support an argument

ASSIGNMENT: Corporate evaluation methods

Specifically, the student will be assessed on the following assessment categories:

1. Explanation of issues
2. Evidence
3. Students position (perspective, thesis/hypothesis)
4. Conclusions and related outcomes

ACTIVITY:

*Determine the cash value of any business using four corporate evaluation methods.

The student will:

Corporate evaluation methods

*explain why is it important to have a reasonable knowledge of what the firm is worth?

*apply the problem data to the four corporate evaluation methods

*calculate and compile the results for each method

*evaluate and explain the results

*determine, prioritize, recommend, and defend the best corporate evaluation method

(20 points)

Complete the following corporate valuation methods (five) based on the following data:

Input Data
Shareholders Equity (SE)	$1,500,000
Net Income (NI)	$850,000
Stock Price (SP)	$50
EPS	$4
No. of outstanding shares	300,000,000
Goodwill	$100,000
Intangibles	$75,000
Total Assets	$3,000,000

Net Worth Method
Net Income Method
Price/Earnings Ratio Method
Outstanding Shares Method
Average Method

2. Determine, recommend and defend the best corporate evaluation method. Identify any concerns that you have about these methods

3. As a future decision maker concerned about either selling or purchasing companies, explain why is it important to have a reasonable knowledge of what the firm is worth. Besides these methods, what else could a decision maker do to obtain other data points on corporate worth on assets?