Question
The stock brokerage firm of Blank, Leibowitz, and Webber has analyzed and recommended two stocks to an investor. The investor was interested in factors such
The stock brokerage firm of Blank, Leibowitz, and Webber has analyzed and recommended two stocks to an investor. The investor was interested in factors such as short-term growth, intermediate growth, and dividends rates.
The data on each stock is as follows:
STOCK ($)FACTORLOUISIANA GAS AND POWERTRIMEX INSULATION COMPANYShort-term growth potential, per dollar invested0.360.24Intermediate growth potential (over next 3 years), per dollar invested1.801.50Dividend rate potential4%8%The investor has the following goals: an appreciation of no less than $720 in the short term, an appreciation of at least $5000 in the next three years, and a dividend income of at least $200 per year. What is the smallest investment the investor can make to meet these three goals?
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