Task1. In late 2010, you bought the common stock of a company which has reported earnings raises in nearly every quarter since your purchase. The price of the stock raised from $12 a share at the time of the purchase to a current level of $45.Notwith standing the success of company, competitors are gaining much strengths Further, your analysis points out that the stock might be over-priced based on your projection of prospect earning earnings growth. Your analysis however was the same one year ago and the earnings have continued to rise. Actions that you might take range from an outright sale of the stock (and the payment of capital gains tax) to doing nothing and continuing to hold the shares. You reflect on these choices and others actions which could be taken.
Question1. Explain the various which you might take and their implications.