Question

Assignment 02 - Financial Markets and Institutions 6. Stock quotes A Aa . Smith Enterprises recently was profiled on a financial information website and touted as a "hot" growth stock. You acquired the stock quote shown below from that website. Smith Enterprises (AMEX: SME) Last Trade: $51.63 Trade Time: 4:00 PM ET Change: +??? (12.09%) Prev Close: 46.06 Open: 47.25 Bid: N/A Ask: N/A 1y Target Est: 55.40 Day's Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div & Yield: 47.22 - 51.96 25.48 - 60.71 1,419,317 629,072 1.63B 23.58 ??? 0.20 (0.40%) The last trade time is shown to be at 4:00 PM Eastern Time. The abbreviation ttm stands for "trailing twelve months," and the number shown reflects data from the previous 12 months. The abbreviation "3m" reflects data from the previous 3 months. What exchange does Smith Enterprises trade on? O NASDAQ O DAX SME OFTSE AMEX

Answer 1

1. What exchange does Smith Enterprises trade on ?

• AMEX

2. Smith's earning per share (EPS) for the trailing 12 months

Last trade Price of Smith = $51.63

Smith's P/E (ttm) = 23.58

and,

$P/E (ttm) = \frac{\textup{Last trade stock price}}{EPS(ttm)}$

$23.58= \frac{\textup{51.63}}{EPS(ttm)}$

$EPS(ttm)= \frac{\textup{51.63}}{23.58}$

$\bg_green \large EPS(ttm)= \$2.19$

Thus, EPS(ttm) is $2.19

3. Price increase today over yesterday closing price

Today Closing Price = $51.63

Yesterday Closing Price = $46.06

Price Increase = $51.63 - $46.06

$\large \textup{Price Increase} = $51.63 - $46.06$

$\bg_green \LARGE \textup{Price Increase} = \$5.57$

4.

Today trade volume = 1,419,317

Average volume (3 months) = 629,072

we can see today's trade volume of Smith's stock is more than double of 3-months average trade volume, Thus, Smith's stock today trade is Relatively heavy trading than normal level of trading.

$\bg_green \LARGE \textup{Relatively heavy trading}$

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.