Class 15: Relationship of the Balance Sheet and Income Statement

EQ - How does cash flow from purchasing an asset versus purchasing liabilities?

1. The only rule you need to know
2. How does cash flow
3. Cash flow handout
4. Differences between Assets and Liabilities
5. Picking your assets:  Pick a Top 5 stock list

Class 12-14: Using Financial Reports to Determine Stock Value

EQ - What can the balance sheet tell us about a company's financial stability?  How can we use this information to determine a stock's value?

1. Annual Report Packet
2. Discussion
3. A closer look at the Balance Sheet
• Assets
• Liabilities
• Stockholder's Equity
4. Try it together
5. Reviewing Stock Quote Data
• Market Capitalization
• Earnings
• Shares Outstanding
6. Intro Book to Market Ratio
7. Project
• Choose a company
• Quote analysis
• Calculate the P/E
• Analyze the Balance Sheet
• Determine Book to Market
8. Repeat the process for 2 major competitors
9. Determine your investment choice

Class 11: Beyond the P/E

EQ – How do we analyze financial reports to assess and compare investment opportunities?

1. Top Secret Handout - "Anything in life worth having is worth working for." - Carnegie
2. Independently complete the lesson material
3. Question the information - Write your questions on a separate sheet of paper
4. If time permits you may review your answers with a partner.
5. Please bring the Top Secret Handout with you to our next class

Class 8 - 10: The Hard Part - Valuatation

EQ - Why is it important to understand the difference between price and value?

1. Activator: Cell Phone v. Dr. Pepper
2. Determining Value - $10/10 shares or $1/100 shares
3. Chalk Talk - Is it cheap or expensive?
4. Real Life Application - Yahoo v. Google v. Baidu
5. Discussion Question - Does price matter when making investment decisions? Why or why not?
6. Valuation - Earnings-based <-- Great link from Fool.com
7. TOD - Write questions about the reading for Mr. Hill to answer next class.
8. Real-Life P/E Ratio comparison