FIN 320 Final Project Part III.docx - Running head FIN 320...

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Running head: FIN 320 FINAL PROJECT PART III 1 FIN 320 Final Project Part III Jessica Feigl Southern New Hampshire University
FIN 320 Final Project Part III 2 Making the decision between going to school or start working right away is a complicated one with many variables. To attend school, which would cost $100,000, I would need to sell part of my 1000 shares of Apple stock or selling my 1000 EE savings bonds which is 5 years from maturity. I can also consider selling a combination of both to afford my continuing education. As of June 28, 2018 my Apple stocks are worth $185.11 per share, meaning I would need to sell 541 shares, a little over half. The full value of the stocks is worth $185,110. The 1000 savings bonds currently is worth $100,000, however in 5 years with a coupon rate of 4.25% those bonds would be worth $121,250. Apple has steadily been increasing its share value over the last year so selling off shares now may not be the best option for me at this time. I need to also consider the company’s financial records over the last few years to make a more informed decision, as these are key indicators of stock performance. Taking into consideration the debt to equity ratio, free cash flow, earnings per share, price to earnings ratio, return on equity and the net profit margin will give me a better understanding of how the company is performing. Directly comparing those ratios to the industry average and its direct competitors will also help me make a more informed decision. Over the last three years Apple has not only increased in all the right areas they have also managed to be the leader in their industry. Selling the Apple stock now may not be the best decision, the risk is low and the rate of return is high so I could potentially make more if I hold onto the stocks for now. There are advantages and disadvantages to each decision. The advantages to selling the Apple stocks is I would only need to sell off 54% of my shares which will still give me large amount for future gains. The disadvantage is that these stocks are doing well and by selling more than half a stand to lose a lot more money than holding onto all these stocks. This is also two

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