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** Spending vs. Investing ** // If a friend ask to borrow $8 and pay you back the $8 in a month would you do it? // =Return on Investment (ROI)= Formula - //Net profit/Investments// //Did you know that is business the word “on” means divided by? Return on Investments, means return(net profit) divided by investment.// //If the ROI is:// //**Positive**// //means the company is paying bills and making a profit.// //**Zero**// //means the company is roughly recouping its costs only to break even.// //**Negative**// //means the company is losing their investments.// 1. Go to [|http://www.wsj.com] - Market Watch 2. Find a company – Look at its Financial Statement and specifically the “Balance Sheet” a. Remember every public company has a stock ticker that is typically a three letter abbreviation. 3. When looking at the company’s Balance Sheet, locate its Total Net Profit and Total Investments. 4. Divide the Total Net Profit by the Investments; this is the Return on Investment (ROI). 5. Analyze if it is profitable, breaking even or losing money. 6. Create a chart like the one below and research several companies that spark your interest. Research the current ROIs Consider This: // Þ ////It is best to compare a company’s annual reports to get a true picture.// // Þ ////Business failure typically happens when its ROI stays negative(in the red) too long// // Þ ////It is common for a small business to be in the negative in the early years.// //o// //It maybe become positive and the growth far outweigh the early loses.// WOWEE! Your Great Aunt left you $10,000 in her will. The only catch is you have to invest it into the Stock Market. In order to do this you must use the ROI model as explained above. Research the companies, review their financials and make decisions! 1. Login in to your gmail account 2. In the upper left corner choose “more” 3. The drop down menu will give a “finance” option. 4. In the finance section set up your portfolio using your research on current ROIS’ stock tickers. 5. Observe you money increase or decrease…
 * ** Company Name ** || ** Ticker Symbol ** || ** Total Net Profit ** || ** Total Investments ** || ** ROI ** || ** Analysis ** ||
 * CKE Restaurants || CKE  || 36.96  || 24.22  || 1.526  || Profitable  ||

Track one company a week. When this Google doc opens click on file and save as new copy. Name it your first name underscore company name. Then post a link below when completed.

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