Short term investment decisions task workbook

Short-term investment decisionsWorkBook(Task)Bachelor’s Degree in Finance and BankingShort-term investment decisionsInstructions: Read the following case carefully and do what is requested.The company Textiles de México has a surplus of cash for $ 50,000 USD that it wants to invest in shortterminstruments, in order for that money togenerate returns over time. According to a financial analysis and withthe cash budget, the company can invest it for 10 years.Felipe, the finance manager, has foundtwo ways to make the investment. The first consistsof ordinarysharesof a utility company; the cost of each share is $25 USD and the dividends theyoffer, also per share,are $2USD for a year (a dividend yield of8%). These dividends will be taxed at the same rates that apply to longtermcapitalgains. Felipe expects the value of these shares to increase by 10%.The other way is through a high-qualitycorporatebond, which iscurrently sold at a face value of $1,250USD,which gives an annual interest rate of7% or $70 USD for every $1,000 invested. After 10years, the bondswill be repaid at their payrollvalue.Suppose the company does not reinvest the annual income generated by the … Purchase document to see full attachment

Don't use plagiarized sources. Get Your Custom Essay on
Short term investment decisions task workbook
Just from $8/Page
Order Essay
Calculate your paper price
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Open chat
Hello Good Friend
40% OFF on your Assignments.
How can we help you today?

Order your essay today and save 20% with the discount code TWENTYTWENTY50