How you will divide given amount across the three companies

Assignment Help Corporate Finance
Reference no: EM131296684

Stock Journal:

Who can help?

Please note that this journal assignment is based on a pretend scenario and fictitious money. However, the assignment is based on actual stock pricing in real time situations. Do not invest your personal money for this assignment.

The capital markets and the ability to raise funds for corporate uses are essential to the US economic systems. For this assignment, imagine that you have $25,000 to invest in US companies. You are buying used stock. The company got the money when it issued the stock originally. You will be buying it from an existing owner.

You are investing, or buying the stock, because you believe the company will make money and pay you a dividend in cash. Each share of stock that you buy entitles you to any dividend declared and a vote at the annual stockholders' meeting.

The stock also allows you the ability to earn your money back by selling the stock. Of course, investing in stocks is risky and there is the possibility that the stock you buy will be worth less when you want your money back. The company is not obligated to give you any of your money back. You will only get your money back if another investor wants to buy your stock.

For your first journal entry complete the following:

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.

1. 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 athttps://google.com, NASDAQ at https://www.nasdaq.com, and https://finance.yahoo.com.

2. 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.

3. 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: EM131296684

Questions Cloud

Determine the required surface tension scale : If the problem is to be studied by using a 1:15 scale model, determine the required surface tension scale if the density scale is equal to 1.
Effects of taxes and regulations on business formation : Do you want to grow the base or increase the tax rate and/or what and why? How do tax rates influence economic activity? What are the effects on the aggregate demand and aggregate supply curves? What are the effects of taxes and regulations on bus..
What enhancements to hdlc are needed : We would like to use a "multilink HDLC" that makes efficient use of these links by sending frames on a FIFO (first-in, first-out) basis on the next available link. What enhancements to HDLC are needed?
Finding the change in utility when income changes : Calculate marginal utility (MU) by finding the change in utility when income changes. For example, when income changes from $0 to $10,000 total utility changes from 800 to 850, which is a change of 50.
How you will divide given amount across the three companies : 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.
Create a scope statement for your project : Create a Scope Statement for your project, using the template provided and the separate instruction document for completing it.
Childhood obesity and climate change : Looking for help with this. After reading the article U.S. Childhood Obesity and Climate Change: Moving Toward Shared Environmental Health Solutions located in Doc Sharing, write a paper summarizing, agreeing, disagreeing, responding to, or reflec..
Patient protection-affordable care act : Do you think the Patient Protection & Affordable Care Act will have no influence or add to or slow business formation and economic growth and why?
How did economic and industry trends affect past revenues : How did economic and industry trends affect past revenues and profits? How might this change in the future? (For example, was there a 9/11 impact?)

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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