B4. You have $92,000 you would like to invest in three different stocks: MarkyB Inc., JohnJohn Ltd., and Garretts Spaghetti House.You would like to invest no more than $16,000 in Garretts Spaghetti House, and you want the amount you invest in MarkyB Inc.,to be at least the amount invested in JohnJohn Ltd. and Garretts Spaghetti House combined.If MarkyB Inc. earns 19% annual interest, JohnJohn Ltd. earns 13% annual interest, and Garretts Spaghetti House earns 8%annual interest, how much money (in dollars) should you invest in each stock to maximize your annual interest earned? What isthe maximum annual interest earned?You should invest $into MarkyB Inc., $House, which will give you give you maximum annual interest $into JohnJohn Ltd., and $into Garretts Spaghetti

Information Provided: Total amount of investment = $92,000 Investment in Garretts Spaghetti =…

Answered: You should invest $ into MarkyB Inc., $…

You should invest $ into MarkyB Inc., $ House, which will give you give you maximum annual interest $ into JohnJohn Ltd., and $ into Garretts Spaghetti

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 4P

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Question

B4.

You have $92,000 you would like to invest in three different stocks: MarkyB Inc., JohnJohn Ltd., and Garretts Spaghetti House.
You would like to invest no more than $16,000 in Garretts Spaghetti House, and you want the amount you invest in MarkyB Inc.,
to be at least the amount invested in JohnJohn Ltd. and Garretts Spaghetti House combined.
If MarkyB Inc. earns 19% annual interest, JohnJohn Ltd. earns 13% annual interest, and Garretts Spaghetti House earns 8%
annual interest, how much money (in dollars) should you invest in each stock to maximize your annual interest earned? What is
the maximum annual interest earned?
You should invest $
into MarkyB Inc., $
House, which will give you give you maximum annual interest $
into JohnJohn Ltd., and $
into Garretts Spaghetti

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