Questions from General Investment

Q: You have $100 to invest. If you put the money

You have $100 to invest. If you put the money into an account earning 5% interest compounded annually, how much money will you have in 10 years? How much money will you have in 10 years if the account...

Q: Briefly describe each of the following, and note how each differs

Briefly describe each of the following, and note how each differs from a conventional preferred stock. a. Convertible preferreds b. Floating-rate preferreds c. Prior preferred stocks d. Trust preferre...

Q: Is it possible for a firm to pass (miss) dividends

Is it possible for a firm to pass (miss) dividends on preferred stocks, even if it earns enough to pay them? Explain. What usually happens when a company passes a dividend on a cumulative preferred st...

Q: Obtain a copy of the most recent year’s Form 1040 (U

Obtain a copy of the most recent year’s Form 1040 (U.S. Individual Income Tax Return), along with Schedules A (Itemized Deductions), B (Interest and Dividend Income), and D (Capital Gains and Losses),...

Q: Assume you have a sizable gain on 200 shares of stock that

Assume you have a sizable gain on 200 shares of stock that you bought two years ago for $22 per share and that is now (December 15) selling for $50 per share. Given a just-announced tax rate cut, effe...

Q: Imagine that, given your current age and marital status, you

Imagine that, given your current age and marital status, you have decided to make the maximum contribution to an individual retirement arrangement (IRA) each year from now until age 65. (Assume that t...

Q: Assume you have inherited a large sum of money and wish to

Assume you have inherited a large sum of money and wish to use part of it to make a real estate investment. a. Would you invest in income property or speculative property? Why? Describe the key charac...

Q: Assume you’re interested in investing in gold to protect against an expected

Assume you’re interested in investing in gold to protect against an expected significant decline in consumer confidence and securities values. a. Isolate and evaluate the various alternatives for inve...

Q: Assume that you are 35 years old, are married with two

Assume that you are 35 years old, are married with two young children, are renting a condo, and have an annual income of $100,000. Use the following questions to guide your preparation of a rough inve...

Q: What role, if any, will short-term investments play

What role, if any, will short-term investments play in your portfolio? Why? Complete the following table for the short-term investments listed. Find their current yields online, and explain which, if...