Question
Advise by providing adequate explanation on each alternative stocks and recommend your client the best stock to choose. Suppose that your client has a required
Advise by providing adequate explanation on each alternative stocks and recommend your client the best stock to choose. Suppose that your client has a required rate of return on any stock investment of 12% on average. Please provide adequate explanation and show workings for each question.
(a) Exxon mobile company has paid a $3.48 annual dividend in 2020 and a $3.52 dividend in 2021. This growth in dividends will continue in the future. Suppose that the companys stocks are trading at $105.86 per share.
(b) Citi group stock paid a dividend of $2.04 in 2020 and $2.04 in 2021. These dividends reflect the long-term growth rate of the company. The stock is currently trading at $44.26 per share.
(c) Intel Company has paid a dividend of $1.39 last year, and $1.46 this year. The increase in the dividend is similar to the long-term growth of the company. The price of the stock in NASDAQ stock exchange is $26.97 per share.
(d) Verizon Communications Company has just paid its annual dividend of $2.57. This dividend will become $2.65 next year, in line with the long-term growth record of the company. The stocks of Verizon are currently trading at $35.35 per share in the stock market
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