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 bank account earning 5% per year.
Common stock of __________.
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:
What is the problem? What are you trying to figure out?
What historical financial information helped you make your decision ratios, growth rates, margins, projections, competition?
What role does risk play and how do you account for it in your analysis?
What industry information helped you make your decision such as competition, overall markets, and state of the economy?
What are you assuming about the future?
What are the critical factors that led you to choose the option you chose?
I started with this:
Also: you can google the name stericycle 10k report and you will find info easily. My company that I chose is stericycle.
Thank you Thank you Thank you Thank you
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