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In the late 2010, you purchased the common stock of a company that has reported significant earnings increases in nearly every quarter since your purchase. The price of the stock increased from $12 a share at the time of the purchase to a current level of $45. Not with standing the success of the company, competitors are gaining much strength. Further, your analysis indicates that the stock may be over-priced based on your projection of future earnings growth. You're analysis, however, was the same one year ago and the earnings have continued to increase. Actions that you might take range from and outright sale of the stock (and the payment of capital gains tax) to doing nothing and continuing to hold shares. You reflect on the vacuous action that you might take and their implications.

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9812243

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