CData Analytics Assignment
CData Analytics Assignment
DA11.1 Data visualization can be used to examine dividends and stock prices.
Example: Refer to the Investor Insight box “What About Dividends?” presented in
Chapter 11 on page 11-19. The dividend yield ratio is the annual dividend per share
divided by the market price per share. Two factors can contribute to a high dividend
yield: (1) the payment of a large dividend, which causes the numerator to be large, or
(2) having a low share market price, which causes the denominator to be small.
Data containing the annual dividend paid per share, the dividend yield, and the
last dividend payment date for four automobile manufacturers, Ford, General
Motors, Toyota, and Tesla are presented here:
Ford Motor Company is considered to have a high dividend yield. But how does
Ford’s dividend yield compare to its competitors? Consider the chart, which presents
the dividends per share and dividend yields for Ford, General Motors, Toyota, and
Tesla.
If you examine the pattern of dividend yields, you observe that both General
Motors and Toyota have higher dividends than Ford, while Tesla currently pays no
dividends. The dividend yields are much higher for Ford than those of General
Motors and Toyota, while Tesla has a zero yield due to not paying dividends.
Sources:
https://www.marketbeat.com/stocks/NYSE/F/dividend/
https://www.marketbeat.com/stocks/NYSE/GM/dividend/
https://www.nasdaq.com/market-activity/stocks/tm/dividend-history
https://www.nasdaq.com/market-activity/stocks/tsla/dividend-history
Tesla is in the growth stage of
Annual Dividends and Yields for Four Automobile Manufacturers
$4.50 9.00%
$4.00 8.00%
Annual Dividend Per Share
$3.50 7.00%
$3.00 6.00%
Dividend Yield
$2.50 5.00%
$2.00 4.00%
$1.50 3.00%
$1.00 2.00%
$0.50 1.00%
$0.00 0.00%
Ford General Motors Toyota Tesla
8.00%
7.00%
6.00%
Dividend Yield
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
la
e time. In the growth stage, a company may retain its earnings and cash for expansion purchases.
Using Data Visualization to Analyze Dividends
Instructions
There are four parts to this problem. Use Excel to perform the following: b. Chart for
a. Calculate the stock market price used to determine the dividend div
yield for Ford, General Motors, and Toyota. Because Tesla does 1800
not pay a dividend, its stock price as of July 27, 2020 has been
provided as $1,539.60. 1600
b. Create a combo column and line chart (you can use the data from 1400
Table A to generate the graph- use the Clustered Combo line on
Secondary Axis Graph) with the dividend yields as columns on the 1200
primary vertical axis and the calculated stock prices graphed as a
line on the secondary vertical axis for the four companies. Include a 1000
descriptive chart title, axes labels, and properly formatted axes.
800
600
c. Examine the visualization you created in part b. Speculate how an
400
investor should balance stock prices and dividend yields when
deciding which stocks to buy. Justify your response.
200
d. Why do you think Tesla has chosen to not pay dividends?
0
Fo
Sources:
https://www.marketbeat.com/stocks/NYSE/F/dividend/
https://www.marketbeat.com/stocks/NYSE/GM/dividend/
https://www.nasdaq.com/market-activity/stocks/tm/dividend-history
https://www.nasdaq.com/market-activity/stocks/tsla/dividend-history c. Response to part c.
Based on the graph that we c
price have a lower dividend yi
constant, dividend yields and
higher dividend yield does no
a) Ford = $7.03
because expectations in the s
example, the dividend yield of
depending on investor expect
you bought at $7.03. If they p
your dividend yield is still 8.53
Based on the graph that we c
price have a lower dividend yi
constant, dividend yields and
higher dividend yield does no
because expectations in the s
General Motors = $26.67 example, the dividend yield of
Toyota = $125.08 depending on investor expect
Tesla = $1,539.60 you bought at $7.03. If they p
your dividend yield is still 8.53
b) not the best indicator on whic
return.
d. Response to part d.
Naturally, we see a lot of high
because everything is being r
Tesla is the result of the inves
lot of money in the future and
be years of earnings ahead th
analysts think that Tesla is ov
Student Work Area
Stock Prices
$ 7.03
$ 26.67
$ 125.08
$ 1,539.60
1600 0.08
1400 0.07
1200 0.06
1000 0.05
800 0.04
600 0.03
400 0.02
200 0.01
0 0
Ford General Motors Toyota Tesla
c. Response to part c.
Based on the graph that we created, we can observe that companies with a higher stock
price have a lower dividend yield. This is because if we assumed dividends to be
onstant, dividend yields and stock prices are always inversely related. A stock with a
higher dividend yield does not necessarily mean that it will give you better returns,
because expectations in the stock price can drive your dividend yield higher or lower. For
example, the dividend yield of ford today is 8.53%. Next year, it could be 10% or 6%
depending on investor expectations. Moreover, if you currently own a Ford stock at which
ou bought at $7.03. If they paid $0.6 dividends next year and the stock price is at $9,
our dividend yield is still 8.53%. What these examples prove is that the dividend yield is
Based on the graph that we created, we can observe that companies with a higher stock
price have a lower dividend yield. This is because if we assumed dividends to be
onstant, dividend yields and stock prices are always inversely related. A stock with a
higher dividend yield does not necessarily mean that it will give you better returns,
because expectations in the stock price can drive your dividend yield higher or lower. For
example, the dividend yield of ford today is 8.53%. Next year, it could be 10% or 6%
depending on investor expectations. Moreover, if you currently own a Ford stock at which
ou bought at $7.03. If they paid $0.6 dividends next year and the stock price is at $9,
our dividend yield is still 8.53%. What these examples prove is that the dividend yield is
not the best indicator on which stocks to buy, rather, it is used as a way to measure your
eturn.
d. Response to part d.
Naturally, we see a lot of high-growth companies that are not paying dividends. This is
because everything is being reinvested to the company. The increase in the price of
Tesla is the result of the investor's collective expectation that Tesla will be able to make a
ot of money in the future and start paying dividends. Therefore, the price of Tesla could
be years of earnings ahead than what it should be valued today. This is why a lot of
analysts think that Tesla is overvalued.
Table A
Dividend
Name Yield Stock Price
Ford 8.53% $ 7.03
General Motors 5.70% $ 26.67
Toyota 3.17% $ 125.08
Tesla 0% $ 1,539.60
Using Data Analytics to Compare the Effect of Stock Splits
DA11.2 Warren Buffet, the CEO of Berkshire Hathaway (BRK-A), Student Work Area
does not believe in stock splits as noted in the Investor Insight box “A
No-Split Philosophy” presented in Chapter 11 on page 11-23. On the
other hand, The Walt Disney Company stock has been split a few a. Chart for part a.
times. The daily closing stock prices from March 1980 to July 2020 for
Berkshire Hathaway Class A shares and Walt Disney Co. shares are
presented in the Excel template. Because there are over 10,000
individual stock prices, only a small excerpt is presented here. The
Walt Disney Company stock prices have been adjusted for the stock
price due to stock splits. Stoc
350
Instructions 300
There are four parts to this problem Use Excel to perform the
250
following:
200
Stock Prices
a. Create a line chart showing the stock price of Berkshire 150
Hathaway and Disney on the same chart. Include a
descriptive chart title, axes labels, properly formatted axes, 100
and a legend. 50
b. Examine the chart. What do you notice about the stock prices 0
illustrated on the chart? 80 80
19 19
c. Copy the first chart to the part c space. Change the chart 1 7/ 1 9/ 21
type to Combo. Use a clustered column chart for Berkshire 3/ 3/ 3/
Hathaway's stock prices, and a line chart for Disney's stock
prices as a secondary vertical axis. Include a descriptive
chart title, axes labels, properly formatted axes, and a
legend.
$290.00
$280.00
Stock P
$300.00
Berkshire Prices
4/7/1980 265 0.87 $260.00
4/8/1980 265 0.89
4/9/1980 265 0.93 $250.00
4/10/1980 260 0.95
4/11/1980 260 0.93 $240.00
4/14/1980 255 0.94
4/15/1980 245 0.92 $230.00
300
250
200
Stock Prices
50
0
80 80 80 80 80 80 80 80 98
0
98
0
98
0
98
0
98
0
98
0
98
0
19 19 19 19 19 19 19 19 1 1 1 1 1 1 1
7/ 9/ 1/ 3/ 5/ 7/ 9/ 1/ 2/ 4/ 6/ 8/ 10
/
12
/
14
/
3/
1
3/
1
3/
2
3/
2
3/
2
3/
2
3/
2
3/
3 4/ 4/ 4/ 4/ 4/ 4/ 4/
Date
b. Response to part b.
The graph of Berkshire Hathway has gradually declined from 1980. This means that the value of the shares has progressively d
o the high supply in the market. In 1980, the percentage available in the market for both firms was scarce; hence, they were hig
due to a higher demand than the low supply. However, with more shares being availed in the market, the value has plummeted
upply is higher than the demand for the shares in the share market.Alternatively, Disney's shares value has remained constant
due to a regulated supply that has ensured the equilibrium price of shares is constant. This has been maintained by ensuring the
elatively equal to the share demand in the market.
$290.00 $0.94
$280.00 $0.92
Stock Price of Berkshire Hathaway and Disney
$300.00 $0.96
$290.00 $0.94
$280.00 $0.92
$270.00 $0.90
Berkshire Prices
Disney Prices
$260.00 $0.88
$250.00 $0.86
$240.00 $0.84
$230.00 $0.82
$220.00 $0.80
80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 berkshire hathaw
19 19 19 19 19 19 19 19 19 /19 /19 /19 /19 /19 /19
7/ 9/ 1/ 3/ 5/ 7/ 9/ 1/ 2 / 4 6 8 0 2 4
3/
1
3/
1
3/
2
3/
2
3/
2
3/
2
3/
2 3
3/ Date 4/ 4/ 4/ 4/ 4/1 4/1 4/1 walt disney co
d. Response to part d.
Disney share pricing has been fluctuating all along with instances of price depression and recovery. Therefore, determining the
of the shares might be difficult for investors. Similarly, Hearthwat share pricing has gradually changed, depicting a decreasing pa
Therefore, determining the share prices for Hathway at any given time would be easier for the investors than for Disney.
available in your version of Excel.Editing this shape or saving this workbook
file format will permanently break the chart.
y
berkshire hathaway
walt disney co
9 80 80
/1 19
1 4/
4/
$0.96
$0.94
$0.92
$0.96
$0.94
$0.92
$0.90
Disney Prices
$0.88
$0.86
$0.84
$0.82
$0.80
berkshire hathaway
walt disney co
DA11.3 Data visualization can be used to understand the behavior of net income
and shares of stock outstanding.
Annual net income and the number of shares outstanding during each year from
2005 through 2020 are presented here for Nike, Inc. (NKE):
Using this data, we are able to calculate earnings per share and use it to obtain
additional insights about Nike.
Instructions
There are four parts to this problem. Use Excel to perform the following:
c. Evaluate any trends you see and possible causes of EPS as it relates to net
income and the number of shares outstanding.
d. What do you think about investing in Nike based on this information?
Student Work Area
a. EPS calculations
2017 #REF!
2018 #REF! 2005
2019 #REF!
2020 #REF! 2000
1995
1 2 3 4 5 6 7 8 9 10 11 12 13
Year EPS
c. Response to part c
EPS always indicate how many shares a company has and how much money the company makes for the
shares sold. this method is used widely used in the metreic fo value estimation. when the EPS is higher, it
indicates a greater value hence the investors pays more for the company shares since they tthink that the
company has higher profits. From the graphical presentation above, the EPS increases from 2005 to 2017.
This is as a result to more investments in the company by the investors. In the year 2018, the EPS reduced
due to decrease, this was as a result of low income invested by the investors. The EPS increased in 2019
and later dropped in 2020. This is because an increase in income would increase EPS, whereas a
decrease in income would cause a decrease in EPS.
D. Response to part d
There is need for more investment in the Nike based. We can be able to see that, the earning per share
(EPS) increases when capital increases and reduces when the capitral investment decreases. Therefore,
there is need for the investers to invest more in Nike so as the EPS may increase.
Annual
Annual Shares
Net Outstandi
Income ng
Table(Millions
(Millions B
Year of US $) of Shares)
2005 $1,212 2,162
2006 $1,392 2,110
Chart Title 2007 $1,492 2,040
2008 $1,883 2,016
$12.00
2009 $1,487 1,963
2010 $1,907 1,976
$10.00
2011 $2,133 1,943
2012 $2,211 1,879
$8.00
2013 $2,472 1,833
2014 $2,693 1,812
$6.00 2015 $3,273 1,769
2016 $3,760 1,743
$4.00 2017 $4,240 1,692
2018 $1,933 1,659
$2.00 2019 $4,029 1,618
2020 $2,539 1,592
$0.00
7 8 9 10 11 12 13 14 15 16
Year EPS