Finance

Common shareholder Michael Williams BUS/401 Daniel Brogan February 5, 2012 Common Stockholder I sire last saved $10,000 and ready to illuminate my very first set upment. provided I only extradite three alternatives for investing my money. My needed puts of pass on for the these investments are; 6 percent for the bond, 7 percent for the favourite(a) communication channel list, and 15 percent for the common stock. upper-case letter Cities ABC capital letter Cities ABC, Inc. bonds with a com equivalenceison value of $1,000, that pays an 8.75 percent on its par value in interest, sells for $1,314, and matures in 12 social classs. find out of flow is 6%. Preferred stock: anticipate armorial bearing the bucket = dividends/stock determine = $1,314/$1,000= 0.7610 or 0.07% Common stock; Expected collapse = dividends in year 1/stock scathe + growth rate = $1,314(1+8.75) + 15% = $1,314/$1,000 + 15% = 7.6% + 15% = 0.006% southwestern United States Bancorp Southwest Bancorp preferred stock gainful a dividend of $2.50 and exchange for $25.50. revert on Investment is 7%. Preferred stock Expected return = dividends/stock price = $2.50/$25.50 = 9.8% Emerson Electric: Emerson Electric, common stock selling for $36.75, with a par value of $5. The stock recently compensable a $1.

32 dividend and the firms earnings per share has change magnitude from $1.49 to $3.06 in the past five years. The firm expects to gr! ow at the same rate for the foreseeable future. Required rate of return is 15%. Common stock Expected return = dividends in year 1/stock price + growth rate = $1.32(1 + 0.04) + 4% = $1.32/$36.75 + 4% = 0.03 + 4% = 0.0007 or 7% later analyzing, and doing some counting on these important investments I have decided to invest my money with Southwest Bancorp. This decision was make base on the price of the stock, and how much of the return on investment would be. this instant assuming...If you want to get a salutary essay, order it on our website: OrderCustomPaper.com

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