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Personal Finance Forum 2 Jack and Rose, acting on the recommendation of their neighbor, recently...

Personal Finance Forum 2
Jack and Rose, acting on the recommendation of their neighbor, recently purchased their first stock, 500 shares of a small capitalization Internet company trading at $80 per share. The neighbor informed them that the stock was a “real money maker” because it recently had a two-for-one stock split and would probably split again soon. Even better, according to their neighbor, the company was predictable to earn $1 per share and pay a $0.25 dividend next year. Jack and Rose have so far been unimpressed with the stock’s performance—the stock had underperformed the S&P500 index this year.
 
Application:
Jack and Rose have come to you for advice. What do you think?

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WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
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