Question
Imagine that you have $100,000 to invest. You are going to invest it all in one investment for the next five years, at least, at
Imagine that you have $100,000 to invest. You are going to invest it all in one investment for the next five years, at least, at which point you will re-evaluate both your investment and personal situations. You will invest it all in one of the following investments these are your only two options: A. A bank account earning 5% per year. B. Commonstockof__________. You will be performing the analysis from the perspective of an investor who is 25 years from retirement, and the investors income is greater than living expenses. The investor has a liquid net worth of $1,000,000 of which 40% invested in the S&P 500 index, 40% in a medium- duration, high-quality bond fund and 20% in a savings account earning 5% interest per year. You are to determine if the investor should take $100,000 from the savings account and purchase $100,000 of this companys common stock. Where are you going to invest your $100,000? Why? Your recommendation should comprehensively but succinctly provide sufficient information for the investor to approve your recommendation by being able to address the investors reasonable questions including the following: 1) What is the problem? What are you trying to figure out? 2) What historical financial information helped you make your decision ratios, growth rates, margins, projections, competition? 3)What role does risk play and how do you account for it in your analysis? 4)What industry information helped you make your decision such as competition, overall markets, and state of the economy? 5) What are you assuming about the future? 6)What are the critical factors that led you to choose the option you chose? Our updated list of companies 1. Apple 2. Nike 3. Microsoft 4. Tesla 5. Schnitzer Steel 6. The Greenbriar Companies 7. Columbia Sportswear 8. Mentor Graphics 9. Craft Brew Alliance 10. Google 11. Under Armour 12. Facebook 13. Alaska Air Group 14. Walmart 15. Boeing 16. Oracle 17. Cisco 18. McDonalds 19. Home Depot 20. Lowes 21. Exxon Mobil 22. Chevron 23. Procter & Gamble 24. Pfizer 25. Walt Disney 26. Caterpillar 27. PepsiCo 28. Yum! Brands 29. Dominos Pizza 30. Starbucks 31. Costco 32. Chipotle Mexican Grill 33. Amazon.com 34. Netflix 35. Herbalife 36. Willamette Valley Vineyards 37. Vail Resorts 38. Target 39. Stericycle 40. Kroger 41. Nordstrom 42. UPS 43. FedEx 44. Goldman Sachs 45. Johnson & Johnson 46. Intel 47. Shimano 48. Wells Fargo & Co 49. Key Technology 50.
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