hw#9 - 3."Assets are valued at purchase price rather than...

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3.”Assets are valued at purchase price rather than fair market value” means that on the company’s balance sheets, company’s assets are recorded at cost rather than fair market value. Company’s balance sheets are somewhat deceiving. A firm may have invested $500000 in real estate several years ago that is worth $1 million today, but the value that is reflected on the firm’s current balance sheet is the $500000 purchase price rather than the $1 million fair market value. 4. Chipotle Mexican Grill: EPS: $2.13 per share Price: $108.59 per share P/E = P/E is a simple ratio that measures the price of a company’s stock against its earning. Generally, the higher a company’s price-to-earning ratio goes, the greater the market thinks it will grow. So Chipotle Mexican Grill is selling for “51 times earning”. I would ask the firm’s founders before making my funding decision about Historic Financial Statements which including income statement, balance sheet and statement of cash flow. Income
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This note was uploaded on 08/27/2008 for the course ENGRI 1270 taught by Professor Callister during the Spring '08 term at Cornell University (Engineering School).

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hw#9 - 3."Assets are valued at purchase price rather than...

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