Question: The case at the end of this chapter contains a detailed investment report of the British Columbia Resources Investment Corporation (BCRIC). Obtain and plot the share prices of BCRIC from 1978 to the present. Also, obtain copies of the firm's annual reports for past years, plus any other information about the firm that may be available from local brokerage houses or standard reference sources.
(a) What, if any, explanations can you find for major share price movements in the past?
(b) Briefly outline the methods that you would use to establish a current value for BCRIC shares. Based on the information that you have, does the current share price appear reasonable? Why or why not?