Tim Jones needs help in making an investment decision. He has created the following table. Based on the expected selling price for the shares, complete the table to compare the return for the investments. Then answer the questions about the investment options.

Tim Jones needs help in making an investment decision He has created the following table Based on the expected selling price for the shares complete the table t class=

Respuesta :

Answer:


Step-by-step explanation:

1) Cash to Tim /Total cost = 900/775

=116.13%

2) If he does not buy DEF, then he can invest the full amount he has in ABC for return of 116.13%.i.e

he can invest 525 dollars

Cost per 100 shares = 775 dollars

Cost for 1 share = 7.75

NO of shares that can be purchased using 525 dollars =525/7.75

=67.74 =70 shares

3) IF selling price = 2100 for ABC,return = 2100/775 =271%

i.e. he would have earned 171% of 525 =372.75dollars

4) cash to total cost = 271%

There are two same questions with different tables. I'll answer those two questions.

(From top to bottom order)

The first table that has ABC = $425/ DEF = $600:

92%

$1,400.00

329.4 shares

$700

150%

The second table that has ABC = $525/ DEF = $500 (this brainly question):

116%

$1,300.00

247.6 shares

$800.00

162%