Finance

Common transmitholder Michael Williams BUS/401 Daniel Brogan February 5, 2012 Common Stockholder I pull in last saved $10,000 and ready to quarter my very first set upment. provided I only take a leak three alternatives for investing my money. My needed yards of pass on for the these investments are; 6 percent for the bond, 7 percent for the favorite(a) stemma, and 15 percent for the common stock. upper-case letter Cities ABC majuscule Cities ABC, Inc. bonds with a hit 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. consecrate of flow is 6%. Preferred stock: anticipate flower the bucket = dividends/stock determine = $1,314/$1,000= 0.7610 or 0.07% Common stock; Expected hold = dividends in year 1/stock value + 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 paying 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 order from $1.49 to $3.06 in the past five years. The firm expects to grow at the same rate for the foreseeable future. Requir! ed 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% aft(prenominal) analyzing, and doing some counting on these important investments I have decided to invest my money with Southwest Bancorp. This decision was do 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 upright essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper