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Investing $ 10000 Cad : A Canadian Savings Bond Essay

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Introduction Given the proposal on whether to invest $10,000 CAD in a Canadian Savings Bond, with a 1.5% return of $150 over a 3-year period, or an investment of $10,000 CAD in the shares of Kraft Heinz Co. at $88.95 USD or $119.46 in CAD per share, further analysis on KHC must be conducted to determine which investment will have the highest rate of return. Factors including net profits or losses, the share and dividend price, and the debt to equity ratio will be analyzed to understand current and projected trends. Further investigations will be conducted using the SWOT analysis and Porter’s Five Forces. For ease of the analysis, the investment amount and return, and analyzed variables will all be converted into USD using an exchange rate of $1.34CAD/USD. The initial amount available for investment is $7445.93 USD, which can be used towards the purchase of 83 of KHC’s shares, or in a Canadian Savings Bond with a return of $111.70 USD. This is subject to fluctuations of currency in the 3-year projection. Net Profits Kraft Heinz Co. formally became a merger in July 2015, so analysis will be conducted in a 52 - 68 week basis. The most recent recorded net income for Kraft Heinz Co. was for the third quarter (July, August, September) of 2016, totalling up to $842 million USD, a huge jump from the net loss of $123 million earned the first quarter after the corporation’s merger and a net profit of $285 million during the second quarter. Since the end of 2015, KHC’s net income has

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