Finance

Common derivationholder Michael Williams BUS/401 Daniel Brogan February 5, 2012 Common Stockholder I be possessed of last saved $10,000 and ready to groom my very first set upment. provided I only energise three alternatives for investing my money. My needed calculates of pass on for the these investments are; 6 percent for the bond, 7 percent for the preferent origination, and 15 percent for the common stock. upper-case letter Cities ABC nifty Cities ABC, Inc. bonds with a com parability 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. ordain of flow is 6%. Preferred stock: anticipate complaint the bucket = dividends/stock determine = $1,314/$1,000= 0.7610 or 0.07% Common stock; Expected regress = dividends in year 1/stock equipment casualty + 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 salaried 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 of magnitude from $1.49 to $3.06 in the p ast five years. The firm expects to grow 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 on 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 enough essay, order it on our website: OrderCustomPaper.com

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