Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.) If you wanted to invest in a income stock company (based on index), you should invest in A.) black sheep broadcasting B.) pheasant pharmaceuticals

image text in transcribedimage text in transcribed

1.) If you wanted to invest in a income stock company (based on index), you should invest in

A.) black sheep broadcasting

B.) pheasant pharmaceuticals

C.) happy giraffe elevator company

D.) happy dog gas company

2.) If you wanted to invest in a large-cap stock company, you should invest in

A.) black sheep broadcasting

B.) pheasant pharmaceuticals

C.) happy giraffe elevator company

D.) happy dog gas company

3.) If you wanted to invest in a growth stock company, you should invest in

A.) black sheep broadcasting

B.) pheasant pharmaceuticals

C.) happy giraffe elevator company

D.) happy dog gas company

4.) If you wanted to invest in a income stock company (based on industry), you should invest in

A.) black sheep broadcasting

B.) pheasant pharmaceuticals

C.) happy giraffe elevator company

D.) happy dog gas company

5.) If you want to invest in a security that pays you a fixed cash flow every quarter, then you should consider investing in

A.) preferred stock

B.) common stock

C.) bonds.

6.) If you want to invest in a security that allows you to participate in the selection of a company's management team, including its board of directors, then you should invest in

A.) preferred stock

B.) common stock

C.) bonds.

7.) If you want to be able to purchase additional shares before new shares are offered to the public, then you should ensure that common shares have a

A.) market right

B.) preemptive right

C.) proportional right.

8.) If you want to incur the lowest possible commissions and fees, then you should use

A.) a full-service brokerage firm

B.) an online discount brokerage.

9.) If you wanted to place a buy order that requires your new shares to be purchased immediately at the prevailing market price, then you should ask for a

A.) matched

B.) fill-or-kill

C.) limit.

10.) If you wanted to place a buy order that requires your new shares to be purchased at a given priceand the order remains open until it is either executed or cancelled

A.) stop loss

B.) fill or kill

C.) good till cancelled order

1. Apply What You've Learned - Investing in Stocks and Bonds Scenario: You are 28 years old and willing to invest $1,500 every other month for the next 15 years. You prefer a conservative-to-moderate investment strategy and have a risk-averse to risk-neutral tolerance for risk. Your highest priority in your investment strategy is preparing you and any family that you might have in the future for your retirement. You also regularly set aside money into savings and CDs to pay for vacations or simar large-ticket items. You've assembled a table of information and company descriptions for some new stocks and bonds that you are thinking about adding to your investment portfolio. Currently, your portfolio consists of 20 blue-chip stocks, and you're thinking about increasing your diversification by adding some different types of stocks. The following are descriptions of potential firms to be added to your portfolio: - Happy Dog Gas Company pays a cash dividend that is greater than most other companies, and has a beta of 0.90. - Happy Giraffe Elevator Company is the biggest firm in its industry. Its shares generally trade in the $100 - 125 per share price range, and it has over 100 million shares outstanding. - Black Sheep Broadcasting has the lion's share of the market and has widespread name recognition. The company earns aboveaverage earnings, pays reasonable dividends, and has a high P/E ratio. It has a beta of 1.75. - Pheasant Pharmaceuticals is growing at a reasonable pace but pays a cash dividend that is greater than that paid by other pharmaceutical companies. The company's beta is 0.80 . If you wanted to invest in a income stock company (based on index), you should invest in . If you wanted to invest in a large-cap stock company, you should invest in If you wanted to invest in a growth stock company, you should invest in If you wanted to invest in a income stock company (based on industry), you should invest in . Now, think about the available attributes of common and preferred stock issues and bond issues, and answer the following questions. If you want to invest in a security that pays you a fixed cash flow every quarter, then you should consider investing in If you want to invest in a security that allows you to participate in the selection of a company's management team, including its board of directors, then you should invest in If you want to be able to purchase additional shares before new shares are offered to the public, then you should ensure that common shares have a Assume that you've selected the investments that you want to add to your portfolio. Now you must consider who to contact to make the purchases and the types of orders to place. If you want to incur the lowest possible commissions and fees, then you should use If you wanted to place a buy order that requires your new shares to be purchased immediately at the prevailing market price, then you should ask for a order. If you wanted to place a buy order that requires your new shares to be purchased at a given price-and the order remains open until it is either executed or cancelled order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

15th Edition

978-0840037039, 0840037031

More Books

Students also viewed these Accounting questions

Question

What is a primary key? A secondary key?

Answered: 1 week ago