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The largest retail brokerage firm in the US, America's Best Investment Company, has hired you to advise clients on investments and to meet their individual financial objectives. Your first client, Dr. Tyrone Washington, is a wealthy, young doctor with little experience in financial decision making and investments.

You want to build him a good foundation with basic investment fundamentals because Dr. Washington has little investment experience. You want to ensure his understanding of the basics of investment vehicles, how they make or lose money, and the risk associated with investing.

You want to discuss with Dr. Washington how to build an optimal portfolio of investments. Although Dr. Washington is looking at different investments, specifically stocks and bonds, he has yet to learn how to take all of his investments and build a portfolio that will meet his financial objectives.

Given the importance of analysis, you decide to focus Dr. Washington's training in investment analysis about how to gather and analyze investment information, appreciate his own risk profile, and make investment decisions that are consistent with his level of risk tolerance.

PROBLEM:

Given that Dr. Washington wants to make stocks a major part of his investment portfolio, you decide to focus on how to analyze stocks. You decide to use ABC Company, one of the largest industrial companies in the US, to demonstrate how to analyze stocks.

Dr. Washington is busy this week, so he asks you to send him an e-mail. Compose an e-mail that explains the following information for ABC Company, which is a publicly traded company that trades on the NYSE.

52-week range: Hi 75 Lo 35
Current stock price: 50
Dividend Yield: 2.75%
Dividend per share: 1.375
P/E ratio: 20
Earnings per share
Shares outstanding: 100 million
Market capitalization

 

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