Question

Log on to finance.yahoo.com and enter the ticker symbol “RRD” in the Get Quotes box to find information about R.R. Donnelley & Sons.

a. Click on company Profile. What is Donnelly’s main line of business?

b. Now go to Key Statistics. How many shares of the company’s stock are outstanding? What is the total market value of the firm? What were its profits in the most recent fiscal year?

c. Look up Major Holders of the company’s stock. What fraction of total shares is held by insiders?

d. Now go to Analyst Opinion. What is the average price target (i.e., the predicted stock price of the Donnelly shares) of the analysts covering this firm? How does that compare to the price at which the stock is currently trading?

e. Look at the company’s Balance Sheet. What were its total assets at the end of the most recent fiscal year?

Short answer

The correct answer is:

a. To provide multichannel solutions for marketing and business communications.

b. Profits in the most recent fiscal year = 211.2M

c. Insider: 1.42%

d. The mean price target is higher than its current selling price

e. Total Assets as of Dec 30, 2021= $3,131,400

By logging into finance yahoo.com, one can access a host of information related to finance such as ticker quotes, news, commentary etc. It also offers various tools to analyze and draw sense of the investment information.

Step-by-step solution

Solution of ‘a’

a. The main line of business of the company R.R. Donnelley & Sons is to provide multichannel solutions for marketing and business communications.

Solution of ‘b’

b. Shares Outstanding: 75.21M
Total Market Value of the firm: 3.28B

Recent Gross Profit: 2.33B

Profits in the most recent fiscal year => Net Income = 211.2M

Solution of ‘c’

c. Insider: 1.42% Institutions: 98.30%

Solution of ‘d’

d. Mean Price Target = $23.50.

Current selling price t= $16.44.

Therefore the mean price target is higher than its current selling price.

Solution of ‘e’

e. Total Assets as of Dec 30, 2021: $3,131,400