A group of investors decides to invest RM500,000 in the stocks of three companies. Company D sells for RM60 a share and has a growth of 16% per year. Company E sells for RM80 per share and has a growth of 12% per year. Company F sells for RM30 a share and has a growth of 9% per year. The group plans to buy four times as many shares of company F as of company E. If the group’s goal is 13.68% growth per year, how many shares of each stock should the investors buy? [Solve this question by the method of inverse]
A group of investors decides to invest RM500,000 in the stocks of three companies. Company D sells for RM60 a share and has a growth of 16% per year. Company E sells for RM80 per share and has a growth of 12% per year. Company F sells for RM30 a share and has a growth of 9% per year. The group plans to buy four times as many shares of company F as of company E. If the group’s goal is 13.68% growth per year, how many shares of each stock should the investors buy? [Solve this question by the method of inverse]
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 5P
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A group of investors decides to invest RM500,000 in the stocks of three companies.
Company D sells for RM60 a share and has a growth of 16% per year. Company E sells for
RM80 per share and has a growth of 12% per year. Company F sells for RM30 a share and
has a growth of 9% per year. The group plans to buy four times as many shares of company F
as of company E. If the group’s goal is 13.68% growth per year, how many shares of each
stock should the investors buy? [Solve this question by the method of inverse]
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