FIN 320
Spring 2002
Prof. J. Mallett

Assignment:  Forecasting E.P.S. 

Using least square trendline (see pages 194-195 in text), forecast EPS for the next fiscal year for the stock that you have chosen for your report.  Use ten years of EPS.  If your stock does not have at least 5 years of earnings, choose another equity. 

Once you have your earnings estimate, compare it to the analysts’ forecast.  Write a paragraph explaining the least square forecast with the analysts’ forecast.  Provide a chart of the regression line. 

Moneycentral.msn.com is a good source for earnings data and analysts’ forecasts.  The TREND function in Excel will do the least square trendline.