please use creditable references from scholarly sources and cite work. please le
ID: 2620886 • Letter: P
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please use creditable references from scholarly sources and cite work. please leave links to the sources you utilized. Also, use at least three different cited sources with links to each individual source. Thank you.
t essay r submission must address the following critical elements I. School Versus Work The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with S 100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. Provide the appropriate data and cal culations that you would perform to make this decision A. B. What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers. C. Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data. D.Explanation / Answer
Answer I ) A .....I would prefer to attend school and will sell all 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) bonds to pay the fee of $ 100,000 . As the bonds are giving return of just 4.25% while shares of APPLE(AAPL) had a average annual retun more than 14.5% from 2002 .On the return parameter , it is better to hold Apple shares for long term . Even Apple is a well established and high rated company , indicates low risk in investment.
B........... Advantage and disadvantages of selling combination of shares and bond
Advantages
Disadvantage
C).... I would prefer to sell the bonds 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) bonds to pay the fee of $ 100,000 . As the bonds are giving return of just 4.25% while shares of APPLE(AAPL) had a average annual retun more than 14.5% from 2002 .On the return parameter , it is better to hold Apple shares for long term . Even Apple is a well established and high rated company , indicates low risk in investment.
D)......The selection of job will provide a good situation for earning ,as job will not only provide a regular cash inflow but there is no need to sell any part of my current investments . The current invesments in Apple shares and bond will remain and grow in future along with a regular income from job .
Answe II) A.... I would prefer a Cash bonus of $ 5000 as taking shares from company at market price i.e $50 each will not add any benefit to me . I can buy shares of many companies (multiples shares) from the same amount to reduce my risk and chances of better return.
B....
Cash Bonus
Advantages
Disadvantage
Shares as bonus
Advantages
Disadvantage
C..... I'll take Cash bonus of $ 5000 as taking shares from company at market price i.e $50 each will not add any benefit to me . I can buy shares of many companies (multiples shares) from the same amount to reduce my risk and chances of better return.
Answer III)
Yes , it will influence me , but as a potential shareholder not as potential employee. There are many companies working as partnership or proprietorship . Thes companies are also a very good place to work with.
under the act ;
Securities Act of 1933
Often referred to as the "truth in securities" law, the Securities Act of 1933 has two basic objectives:
investors receive financial and other significant information concerning securities being offered for public sale; and
prohibit deceit, misrepresentations, and other fraud in the sale of securities.
B).... Some federal acts for better perormance as finance manager are :
Advantages
- A good mix of portfolio
- A moderate risk
- A moderate return ( as combination stock and bond will remain invested)
- A better strategic move for investors
Disadvantage
- Low in overall return due to low investment in shares
- Study both market (debt and Stock ) for better understanding
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