What is john stock a yield-return

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Mandeep Kaur is currently 22 years old and wants to retire by the age of 50 and has set a target of 1,500,000 as the future value of cash in her bank account when she intends to retired comfortably. Market interest are fluctuating but on Average the interest will be 1.6% throughout her working life.

1. What will be her yearly payments if She puts aside at the end of each year?

2. What will be her yearly payments if She puts aside at the beginning of each year?

John is thinking about investing in two different stocks, A & B. -> Stock A pays annual dividends of 7.14. Its current stock price price is CAD 40 and it is expected to reach 110 in three years if John holds the stock for THREE years -> Stock B pays annual dividends of 5.12. Its current stock price price is CAD 20 and it is expected to reach 150 in three years if John holds the stock for FOUR years

a). What is John's Stock A Yield/Return?

b). What is John's Stock B Yield/Return?

C). Based on yields, which stock do you recommend? (Write your answer as Stock A or Stock B)

Reference no: EM133110898

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