Galacia Rolls Sep 18 8:48am Hello Class, With stocks, you can buy a part of the corporation, which sounds awesome. And you can only lose your investment if the corporation goes bankrupt (which is still bad). I mostly hear from my friends about dividend stocks because they pay you dividends every quarter. I think that is awesome, but to receive a significant amount of dividends, you need to invest a significant amount of capital in the same stock. Stocks are liquid too, which means you can buy or sell them easily. There are stocks that are more volatile than others, which means that they tend to increase in price and decrease rapidly. These types of stocks are riskier than other stocks whose volatility is lower. I have started to invest in a few popular mutual funds in Robinhood, but I am hesitant to invest in stocks mainly because the mutual funds diversify my investment while stocks do not diversify my investment.

Galacia Rolls Sep 18 8:48am Hello Class, With stocks, you can buy a part of the corporation, which sounds awesome. And you can only lose your investment if the corporation goes bankrupt (which is still bad). I mostly hear from my friends about dividend stocks because they pay you dividends every quarter. I think that is awesome, but to receive a significant amount of dividends, you need to invest a significant amount of capital in the same stock. Stocks are liquid too, which means you can buy or sell them easily. There are stocks that are more volatile than others, which means that they tend to increase in price and decrease rapidly. These types of stocks are riskier than other stocks whose volatility is lower. I have started to invest in a few popular mutual funds in Robinhood, but I am hesitant to invest in stocks mainly because the mutual funds diversify my investment while stocks do not diversify my investment.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter9: Stocks And Their Valuation

Section: Chapter Questions

Problem 9TCL

See similar textbooks

Similar questions

H4 You sell short 18 shares of Wells Fargo &Co that are currently selling at $54 per share. You post the 0.56 margin required on the short sale. If your broker requires a 0.37 maintenance margin (MMR), at what stock price will you get a margin call? (You earn no interest on the funds in your margin account, and the firm does not pay any dividends.)
Chapter 11, Question 2
None
6 Brits Ic raw ill The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three investments: (a) Treasury bonds at a 6 percent yield; (b) corporate bonds at a 13 percent yield; or (c) preferred stock at an 7 percent yield. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends is 10 percent. a-1. Compute the aftertax yields for the three investment options. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Aftertax yields a. Treasury bonds b. Corporate bonds c. Preferred stock 3.60 % 7.80 6.30% % e-2. Which one of the three investments should she select based on the aftertax yields? Corporate bond Q Search 4 81 Activate Windows Go to Settings to active A ENG de so
Plz correct solution.
i 29 You are bearish on Telecom and decide to sell short 170 shares at the current market price of $70 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole dollar.) Cash or securities to be put into brokerage account Seved b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.) Margin call will be made at price 4 or higher Help Save
6
44 00:36:48 Which statement describes investing for growth? Multiple Choice I want an attractive return over the long haul without having to constantly track my investments I want a steady flow of income, even though the value of the investments won't increase much I want to increase my wealth fast and am willing to take risks I'm willing to risk my time and money hunting for undervalued stocks that might become profitable I'm willing to take big risks and pay very close attention to buy low and sell high for quick profits
Chapter 11, Question 5. This is a follow up from previous question
A Moving to another question will save this response. Question 9 Corporate bonds Ore lables on the balance sheet Owe riskier than the firm's preferred stock O are ued as a method of providing additional equity funding for a firm O are less risky than the firm's common stock O Al of the listed items are correct AMoving to another question will save this response. MacBook Air SO 5 8 E Y. D F G H C V %24
Business 123 Introduction to Investments May I please have the solution for the following exercise? Thank you,
Chapter 11, Question 5. Two parts :)