Some extra money to invest for one year

Assignment Help Financial Econometrics

Reference no: EM131870966

Suppose you have some extra money to invest for 1 year. After a? year, you will need to sell your investment to pay tuition. After listening to Bloomberg?, you decide that you want to buy Intel Corp. stock. You call your broker and find that Intel is currently selling for $ 50.77 per share and pays $ 0.14 per year in dividends. The analyst on Bloomberg predicts that the stock will be selling for $ 61.00 in 1 year. Assume that you would be satisfied to earn 11.7 % on the stock. Should you buy this? stock? The price per share is?? (Round to the nearest? cent.)

Should you buy this? stock?. ?(Select all the choices that? apply.)

A. Based on your? analysis, you find that the stock is worth more that what the stock is currently available for.? Therefore, you would choose to buy it.

B. Based on your? analysis, you find that the stock is worth more that what the stock is currently available for.? Therefore, you would choose not to buy it.

C. You may wonder why the stock is selling for less than what it is worth. It could be that other investors place a different risk on the future cash flows or they are more pessimistic about future cash flows than you.

D. You may wonder why the stock is selling for more than what it is worth. It could be that other investors place a different risk on the future cash flows or they are more pessimistic about future cash flows than you.

Reference no: EM131870966

Questions Cloud

Describe the expected output and behavior of apriori method : Describe the expected output and behavior of the Apriori method and what it will accomplish for the credit approval data.

Discuss utilitarian theory of ethical decision making : Describe a situation in which the utilitarian theory of ethical decision making would come into play in reference to a human resource issue.

Red blood cells likely to swell up or shrink : Red blood cells are placed in water that has been distilled so that there are no solutes dissolved in the water are the red blood cells likely to swell up

New information about zika : How concerned we should be about Zika virus and how has the scientific method been used to uncover this new information about Zika?

Some extra money to invest for one year : Suppose you have some extra money to invest for 1 year. After a? year, you will need to sell your investment to pay tuition. Should you buy this? stock?

Changes and age associated diseases : In each of the following changes indicate which are age related and which are age associated changes and age associated diseases.

Evaluate your personal and professional risk : Evaluate your personal and professional risk. Are you in danger of losing your job? Will your career path be affected?

Describe the five values held by xp teams : Describe the five values held by XP teams? Describe the strengths and weaknesses of the random paradigm team structure?

Characteristics of a culturally competent organization : Evaluate two of the five characteristics of a culturally competent organization, in terms of how well they relate to human resources management best practice.

User Account

All Pages