FIN 420 - Week 4 - Individual Assignment - Market Analysis Proposal

FIN 420 - Week 4 - Individual Assignment - Market Analysis Proposal

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MARKET ANALYSIS PROPOSAL Market Analysis Proposal FIN 420 University of Phoenix 1
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MARKET ANALYSIS PROPOSAL 2 I. Client’s Personal Financial Goals Stephen Hawkins is a 31 year-old Group Product Manager at Apple Inc. who aspires to a net worth of at least $50 million by the time he turns 55. It is his belief that such an amount will give him the flexibility for a comfortable retirement and a substantial entrepreneurial venture. Currently earning $55,000 take-home pay per annum after FICA and income taxes, he has been assured he is on the fast track to upper management. This means that, barring mishaps, misjudgments, and fatal counterstrokes by rival personal computer and smartphone makers, Stephen could well attain Chief Marketing Officer rank by age 45. Fast-track candidates who do well can normally expect 8% of gross income in deferred bonuses and at least 14% in salary adjustments each year. Current surplus – after living expenses, insurance, and entertainment – comes to $18,000 p.a. . Granting that inflation and rising expectations “capture” 80% of incremental income, that surplus could nonetheless grow to $25.423 million in 25 years. II. Three Common Investment Options Given a modest appetite for risk and the plethora of investment choices, three options that might be considered are certificates of deposit, stock market indices, and a high-flying stock or two (U.S. Securities and Exchange Commission, 2008). Owning shares of a cutting-edge industry leader like Google Inc. might represent a potentially high-yield investment with significant risk in terms of a large downside. The rationale for the growth of the stock rests on the twin assumptions that Google dominates the
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This note was uploaded on 02/26/2012 for the course FIN 102 taught by Professor Franks during the Spring '12 term at University of Phoenix.

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FIN 420 - Week 4 - Individual Assignment - Market Analysis Proposal

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