S2 Investment Purchasing Stocks
S2 Investment: Purchasing Stocks
Provide the following information on the company's most recent business day's transactions. today's date: 5/14/14 company name: The Walt Disney Company ticker symbol: DIS the highest stock price for the previous 52 weeks: 83.65 the lowest stock price for the previous 52 weeks: 60.41 annual dividend payment, if applicable: 0.86 the return on the dividend price to earnings ratio: 21.13 the number of shares traded: 1,731,840,000 highest stock price paid: 82.75 lowest stock price paid: 60.41 closing price: $82.08 the change in price from the previous day's closing (expressed as a decimal): 82.42
Part II: Calculations
Research the closing stock prices for the past week.
1. List the closing stock price for all five business days.
MONDAY: 82.5
TUESDAY: 81.0
WEDNESDAY: 80.5
THURSDAY: 81.5
FRIDAY: 82.0
2. Imagine you purchased 75 shares of this stock on Day 1 and sold all of those shares on Day 3. What is the return on your investment? Show your work.
3. If you had sold all of the stock on Day 5 instead of Day 3, what is the difference between the return on your investment? Show your work.
Part III: Analysis
Using the information found in your research and calculations, answer the following questions in complete sentences.
1. Is it better to sell the stock on Day 3 instead of Day 5? Why or why not?
It’s better to sell on day 5 because I paid more on day five so they will be worth more.
2. Ideally, when would you like to sell these shares? Day 3? Day 5? or longer than five days? When developing your response, consider the trend for the stock in the last five days and what could potentially happen in the days ahead.
I would sell the shares on day 5 because the more you put into it, the more money you will get out of it.
3. Would you advise others to invest in this company? Why or why not? Answer the following questions to help guide your response.
Do you believe investor confidence is high or low in the company? Why?
Investor
Provide the following information on the company's most recent business day's transactions. today's date: 5/14/14 company name: The Walt Disney Company ticker symbol: DIS the highest stock price for the previous 52 weeks: 83.65 the lowest stock price for the previous 52 weeks: 60.41 annual dividend payment, if applicable: 0.86 the return on the dividend price to earnings ratio: 21.13 the number of shares traded: 1,731,840,000 highest stock price paid: 82.75 lowest stock price paid: 60.41 closing price: $82.08 the change in price from the previous day's closing (expressed as a decimal): 82.42
Part II: Calculations
Research the closing stock prices for the past week.
1. List the closing stock price for all five business days.
MONDAY: 82.5
TUESDAY: 81.0
WEDNESDAY: 80.5
THURSDAY: 81.5
FRIDAY: 82.0
2. Imagine you purchased 75 shares of this stock on Day 1 and sold all of those shares on Day 3. What is the return on your investment? Show your work.
3. If you had sold all of the stock on Day 5 instead of Day 3, what is the difference between the return on your investment? Show your work.
Part III: Analysis
Using the information found in your research and calculations, answer the following questions in complete sentences.
1. Is it better to sell the stock on Day 3 instead of Day 5? Why or why not?
It’s better to sell on day 5 because I paid more on day five so they will be worth more.
2. Ideally, when would you like to sell these shares? Day 3? Day 5? or longer than five days? When developing your response, consider the trend for the stock in the last five days and what could potentially happen in the days ahead.
I would sell the shares on day 5 because the more you put into it, the more money you will get out of it.
3. Would you advise others to invest in this company? Why or why not? Answer the following questions to help guide your response.
Do you believe investor confidence is high or low in the company? Why?
Investor