Determine how many shares you can buy

Assignment Help Finance Basics
Reference no: EM131147902

JOURNAL

1. Indicate the companies you are investing in: Select three US companies that are publicly traded. Please use your knowledge and experience and pick, as many stocks as you'd like. Lastly, make sure you are practicing good diversification. Jim Cramer, Money Manger, on CNBC, plays a game at the end of his show called "Am I Diversified." Check out a short clip to get a sense of industry diversification at https://www.youtube.com/watch?v=f3lDxexupcE.

2. Sources of Information: There are many ways to find such companies and the stock prices, including the New York Stock Exchange at https://www.nyse.com, Google Finance at https://google.com, NASDAQ at https://www.nasdaq.com, and https://finance.yahoo.com.

3. Indicate the amount you are investing in each company: Decide how you will divide $25,000 across the three companies; e.g. $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3. You decide the amount you are investing in each company. You do not have to provide any analysis to justify your decisions. You must only provide some reason for picking that company. For example, you might invest in Ford because that company gets a lot of your money and you hear that Ford is doing well, and will continue to do well.

4. Indicate the number of shares you are buying, and the price of the shares you are buying for each company: Once you decide the companies and the amount for each company, determine how many shares you can buy. If Company 1 is selling for $42.16, then you may buy $10,000/ $42.16, or 237.19 shares. But you cannot buy a part of a share, so you decide to buy either 237 or 238. In this example you buy 237 shares, at $42.16 per share, investing $9,991.92. You won't be able to buy exactly $10,000, or $5,000, or $25,000, but it will be relatively close.

Reference no: EM131147902

Questions Cloud

Derive a formula for the time to empty the tank : A swimming pool W by Y by h deep is to be emptied by gravity through the long pipe shown in Fig. P6.54. Assuming an average pipe friction factor fav and neglecting minor losses, derive a formula for the time to empty the tank from an initial level..
Consumer decision-making process : When purchasing products, consumers generally follow the consumer decision-making process. Review this process in your text. Then think of a product you purchased that involved extensive decision making. Name the product and describe your experience ..
Determine whether condensation occurs : Suppose that the duct's square cross-section is 0.3 m by 0.3 m and the effective outside heat transfer coefficient is 5 W/m2K in still air. Determine whether condensation occurs.
Power consumption has risen from the usual level : You are a quality manager. On one of your company’s product lines, a report shows that power consumption has risen from the usual level of 35.5 W to a level of 35.9 W. This difference is, without a doubt, statistically significant. However, the line ..
Determine how many shares you can buy : Indicate the number of shares you are buying, and the price of the shares you are buying for each company: Once you decide the companies and the amount for each company, determine how many shares you can buy.
About the beer map and shampoo map : For (1( beer and (2) shampoo products that you are familiar with, develop positioning (perceptual) maps that reflect your knowledge of paticular products in these categories. Include for products in both your beer map and shampoo map. Below each map ..
What is the maximum roof area that can be drained : The gutter is designed for a sudden rainstorm of up to 5 inches per hour. For this condition, what is the maximum roof area that can be drained successfully?
Calculate the signal to noise for the entire data set : Measure x, then y, then z and then rezero the calipers and repeat. The x-axis will be in the direction of the lettering. The y-axis is orthogonal to the lettering and the z-axis is the thickness of the block. Look at all the data to identify any..
Razor incorporated case study : e-Razor, Incorporated After four years as a new start-up, e-Razor has expanded its line of programmable razors to include both linear and rotary models, as well as women"s and teenagers" Marketing would like to see the programmable functions extended..

Reviews

Write a Review

Finance Basics Questions & Answers

  In which country would the treasurer want to invest

The spot exchange rate is £0.70, and the three-month forward rate is £0.71. Ignoring transaction costs, in which country would the treasurer want to invest the company's funds? Why?

  What is the required rate of return on steve services stock

Steve Services stock has a beta of 1.4. The risk-free rate is 6.7%, and the expected return on the market is 8%. What is the required rate of return on Steve's Services stock.

  What are the major credit policy variables a firm

What are the major credit policy variables a firm can use to control its level of receivables investment?

  Call premium of the bond

Consider a bond with a 5.2 percent coupon rate and a yield to call of 6.1 percent. The bond currently sells for $1,086. If the bond is callable in 5 years, what is the call premium of the bond?

  Compute the weighted average cost of capital of the firm

A firm has a capital structure with $30 million in equity and $90 million of debt. The cost of equity capital is 10% and the pretax cost of debt is 6%. If the marginal tax rate of the firm id 40%, compute the weighted average cost of capital of th..

  Reaction to intel announcement

Discuss whether the analysts following Intel appear to have been influenced by any psychological phenomena, both generally and in their reaction to Intel's announcement in September 2000.

  What is best strategy to move status quo to a desired state

According to the force field analysis model, what is the best strategy to move the status quo to a desired state

  Combating external fraud through computer technology

Banking Security and Biometrics: Combating External Fraud through Computer Technology

  Ethical issues based on an accounting issue

For this assignment, choose a company that has had ethical issues based on an accounting issue, such as internal control issues, fraudulent activity, theft, and so forth. Create a PowerPoint presentation that you could share with new hires. For th..

  What is the maximum amount that the investor

1. An investment will produce an annual cash flow of $4000 for three years. The investor requires a 12% rate of return compounded annually. What is the maximum amount that the investor can pay and still earn the required rate of return?

  Scientists believe about the origin of life on earth

There is a summary statement concerning what scientists believe about the origin of life on earth. Summarize the three (3) current competing theories of the origin of life on Earth: it arrived from an extraterrestrial source, it originated as a he..

  The annie smith dance center

The Director of Annie Smith Dance Center is asking for assistance with the financial aspects of running a professional group of performers. She wants financial information presented in an easy to read format and a better understand of the profitab..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd