rema mainin 8. Apple P=$278.85 EPS= $22.45 P/E ratio = Rate of return =

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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8. Apple
P=$278.85
EPS= $22.45
P/E ratio =
Rate of return =
9. Based on the rate of return, would you
buy Apple or Microsoft ?
10. Based only the rate of return, would you
buy Microsoft (based on problem # 7)
or the following bond?
PB=$360,
1. PB = $5000
Annual Interest Payment = $95
Yield =
2. PB= $1600
Annual Interest Payment = $90
If the bond is resold for $2000 then:
new yield on bond =
3. PB = $2000
Annual Interest Payment = $160
Yield=
If the bond is resold for $2500 then:
new yield on bond
=
Transcribed Image Text:Time remaining: 00:05:58 8. Apple P=$278.85 EPS= $22.45 P/E ratio = Rate of return = 9. Based on the rate of return, would you buy Apple or Microsoft ? 10. Based only the rate of return, would you buy Microsoft (based on problem # 7) or the following bond? PB=$360, 1. PB = $5000 Annual Interest Payment = $95 Yield = 2. PB= $1600 Annual Interest Payment = $90 If the bond is resold for $2000 then: new yield on bond = 3. PB = $2000 Annual Interest Payment = $160 Yield= If the bond is resold for $2500 then: new yield on bond =
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