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Billy Hershey Company

Decent Essays

It’s always good to start investing money at an early age, however, it’s a hard start. Many banks have improved interest rates as well as no opening fees to start a savings account. Stocks, such as health and technology are also currently going up. Billy should start by saving small amounts of money per week for two years and placing it in a savings account. He should also buy health and tech stocks, such as Johnson & Johnson (JNJ) and International Business Machines Corporation (IBM), and keep a diversified portfolio, along with buying bonds. Billy should start by saving $6 every week and put in a bank such as Synchrony Bank, which has an annual interest rate of 1.05% Since Billy is a lawn mower, he should be able to generate at least $6 …show more content…

Billy would still deposit $6 a week and about $24 a month. With the interest included, Billy would’ve saved about $2,020.49 in seven years, however this is risky because he could possibly lose a lot of money while investing in stocks. Billy could avoid speculative risks by not buying any fashion stocks and food stocks. Fashion is an unpredictable field, with the fads changing nearly every day and how people view the new products, as well as the popularity of the products. Companies like General Mills, Inc. (GIS), Hershey Company (HSY) and Kellogg Company (K) in the food industry are all going down. Billy should a diversified portfolio, but buy more health and technology stocks because they are at low prices and are more bullish. For example, IBM is at $149.25. The 52 week low is 116.9 and the 52 week high is 176.3. If Billy buys 10 shares, he should have at least a 2% (total purchase price ÷ money gained/loss x 100) expected return on the stocks. If Billy buys 10 shares of JNJ at $108.97, he would get at least 3% return. The 52 week low for JNJ is 81.79 and the 52 week high is 109.84. This shows that JNJ is closer to its high, so Billy would most likely make a dividend off of …show more content…

GE has a face value of $98.40 and the coupon is 0.042%, which is equivalent to $0.00042, which is no money, rounded to the nearest hundredths. The maturity of the bond is 5 years (5/17/2021), so Billy would get $500.00 back from the GE bond issuers. Billy would make a dividend of $8 by buying the bond at a lower price than the returned money. PEP has a face value of $99.60 and the coupon percentage is 0.467%, which is 0.00467 and 0.01 rounded to the nearest hundredths. The maturity is 2 years (04/30/2018), so Billy would get $200.02 back and make a dividend of

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