Lessons: Chapter 7 - What the Income Statement Reveals
Important Links
Understand what "profit" means - MoneyWeek video: What Is Profit?
Reading an income statement: Reading Income Statement
Video: How to Read a Profit and Loss Statement
Understanding an income statement - video from Investopedia: Understanding Income Statement
Assignments
7.1: If the earnings after taxes of a company owned by 100 shareholders (each of whom own 1 share of the company) is $200,000, what is the earnings per share (EPS) of the company?
7.2: If the earnings after taxes of a company is $200,000 and its revenue is $1,000,000, what is its net profit margin?
7.3: What one of these items most accurately describe the meaning of retained earnings.
Retained earnings is the dividend of a company.
Retained earnings is the earnings after taxes kept by the company instead of distributing it to its shareholders.
Retained earnings is the net profit margin of a company.
7.4: If the dividend per share of a company is $2 and its share price is $40, what is its dividend yield?
7.5: Choose one of the stocks in the list below that would not be considered a blue-chip stock.
General Electric (GE) stock
Wal-Mart (WMT) stock
Disney (DIS) stock
LinkedIn (LNKD) stock
