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(P2-43) AN INVESTOR IS CONSIDERING THREE DIFFERENT TELEVISION NEWS

(P2-43) AN INVESTOR IS CONSIDERING THREE DIFFERENT TELEVISION NEWS

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Author: Christine Farr
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http://theperfecthomework.com/p2-43-an-investor-is-considering-three-different-television-news-stocks-to-complement-his-portfolio/

(P2-43) An investor is considering three different television news stocks to complement his portfolio: British Broadcasting Company (BBC), Canadian Broadcasting Company (CBC), and Australian Broadcasting Company (ABC). His broker has given him the following information:
 
 
Short-Term Growth (per $ invested)

Intermediate Growth (per $ invested)

Dividend Rate

BBC

0.39

1.59

8%

CBC

0.26

1.70

4%

ABC

0.42

1.45

6%

 
 
The investor’s criteria are as follows: (1) The investment should yield short-term growth of at least $1,000; (2) the investment should yield intermediate-term growth of at least $6,000; and (3) the dividends should be at least $250 per year. Determine the least amount the investor can invest and how that investment should be allocated between the three stocks.
Invest $2,555.25 in BBC and $1,139.50 in CBC Total investment = $3,694.75


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