Scenario 1. Your grandparents gave you P 175,000.00 on your 16th birthday. You were instructed to invest the money so that the earnings can be used to pay for your tuition fee in college. Having heard about the risks and rewards of the stock market from your parents, you become interested in buying stocks in a particular company. Below are the options given to you by your parents: Option 1: Company ABC's selling stock is P 1,500.00 per share that will have a dividend of P 200.00 per year. The stock can be sold after two years at P2,000.00 and the market requires a rate of return of 15%. Option2: Company XYZ's selling stock is P 1,000.00 per share that will have a dividend of P 180.00 per year. The stock can be sold after two years at P2,000.00 and the market requires a rate of return of 7%. In which company will you invest your money? Why?
Scenario 1. Your grandparents gave you P 175,000.00 on your 16th birthday. You were instructed to invest the money so that the earnings can be used to pay for your tuition fee in college. Having heard about the risks and rewards of the stock market from your parents, you become interested in buying stocks in a particular company. Below are the options given to you by your parents: Option 1: Company ABC's selling stock is P 1,500.00 per share that will have a dividend of P 200.00 per year. The stock can be sold after two years at P2,000.00 and the market requires a rate of return of 15%. Option2: Company XYZ's selling stock is P 1,000.00 per share that will have a dividend of P 180.00 per year. The stock can be sold after two years at P2,000.00 and the market requires a rate of return of 7%. In which company will you invest your money? Why?
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 64E
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