John asked for your help regarding his plant to invest in the Philippine Stock Exchange. Currently, he has P1,000,000 extra money which he plans to invest in Jollibee Foods Corporation, expecting that the company will continue to perform well in the future. Is it advisable for John to invest all his money in just one company? Why or why not? Discuss.
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John asked for your help regarding his plant to invest in the Philippine Stock Exchange. Currently, he has P1,000,000 extra money which he plans to invest in Jollibee Foods Corporation, expecting that the company will continue to perform well in the future. Is it advisable for John to invest all his money in just one company? Why or why not? Discuss.
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- 1. Financial institutions in the U.S. economy Suppose Gilberto would like to use $5,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as issued by NanoSpeck would give Gilberto will be paid first. Suppose instead Gilberto decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. finance. Buying a bond the firm. In the event that NanoSpeck runs into financial difficulty, An increase in the perceived profitability of NanoSpeck will likely cause the value of Gilberto's shares to rise. The price of his shares will rise if NanoSpeck issues additional shares of stock. The Dow Jones Industrial Average is an example of a stock exchange here he can purchase NanoSpeck stock. Alternatively, Gilberto could make a financial investment by…1. Financial institutions in the U.S. economy Suppose Tyler decides to use $9,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Arcadia, a biomedical research firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Arcadia stock would give Tyler the firm. In the event that Arcadia runs into financial difficulty, will be paid first. Suppose Tyler chooses to buy 250 shares of Arcadia stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Tyler's shares to decline. An increase in the perceived profitability of Arcadia will likely cause the value of Tyler's shares to rise. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Arcadia stock. Alternatively, Tyler…1. Miss V is bullish about the stock of Ghana Commercial Bank (GCB). She is very confident in the five-year strategic plan announced by GCB's Board. Miss V is planning to have her honey moon in the Maldives in a year's time. She hopes that the stock will do very well so that she can have a great time in the Maldives. She has therefore decided to invest most of her savings of about GHS 61,320 in GCB's stock. GCB's last trading price on the Ghana Stock Exchange was GHS 5.11. Due to Miss V's enthusiasm, she has approached her investment banker to see if she can get a loan to partly finance the purchase of the stock. The investment bank charges an interest rate of 30% per annum on loans to its clients. Miss V has decided to purchase about 20,000 shares in Ghana Commercial Bank. The margin requirement has been given as 60%. A. How much can Miss V borrow from her broker? B. If Miss V has to pay commissions of GHS 2000, what will be the profit/loss and the return on the capital she invested…
- An individual has $200,000 to invest. They are trying to maximize their return, but have given their investor advisor instruction on how to invest the money. The investment advisor has given them four different alternatives to invest in, they are listed in the table below along with their rates of return that is estimated. Investment-Type Hydro - Stock USA- Treasury Bills The mobile phone Co.-Bonds Texas Oil Co. - Stock Rate of Return 12% 1.25% 3.35% 1.75% The individual has the following parameters. 1. That no more than 50% can be invested in bonds. 2. That at least 25% is invested in treasury bills. 3. That at least 15% be invested in Texas Oil Co. 4. That all of the $200,000 is to be invested. Find the optimal investment mix and what is the project return in the next year?Suppose Clinton decides to use $7,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. finance. Buying a share of Suppose Bayzer, a pharmaceutical firm, is selling stocks to raise money for a new lab. This practice is called Bayzer stock would give Clinton the firm. In the event that Bayzer runs into financial difficulty, will be paid first.Suppose Alex would like to use $8,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. finance. Buying a bond Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as Issued by NanoSpeck would give Alex the firm. In the event that NanoSpeck runs into financial difficulty, will be paid first. Suppose instead Alex decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. O An increase in the perceived profitability of NanoSpeck will likely cause the value of Alex's shares to rise. ONanoSpeck earns revenue when Alex purchases 100 shares, even if he purchases them ftrom an existing shareholder. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck stock. higher Alternatively, Alex could make a financial Investment by purchasing bonds issued by the…
- John has a great idea to setup a pie and pastie factory. He needs $200,000 to buy theequipment and to lease suitable premises for a year. He is not sure whether he should setup acompany and issue 200,000 shares to his friends, or else try to borrow $200,000 from a bank toraise those funds.Explain to him the advantages and disadvantages of both alternatives.A group of billionaires is considering investing in higher education in the Caribbean, which includes all post-secondary and tertiary institutions, and has turned to the budding entrepreneurs to provide them with the necessary industry information. Conduct research and write a report on Higher Education in the Caribbean so that the billionaires can decide whether to invest in a new higher education institution.Recently, you were contacted by a friend who was thinking of signing a Joint Venture agreement to fund a new shopping center to be built in Melbourne. Along with several other investors, each party will invest $25,000 to the venture in order to pay for the building and construction work. Your friend knows several of the other investors and is looking forward to working closely with the other investors on this new project, however your friend feels very strongly about keeping his business affairs completely separate from those of other investors. Required: What advice and/ or warning would you give your friend before signing the Joint Venture contract? You must refer to legislation and/ or case law and clearly define all business structures that may impact on the advice you give your friend.