Assignment:
Answer the following seven questions, showing all of your working where appropriate. For the purposes of calculations, you may ignore the impact of taxes.
1. What financial issues do David and Kate have?
2. Calculate the current dividend return on SMARTIT.
3. What has SMARTIT average p/a capital growth been? if SMARTIT share price grows over the next three years by that average, then what will the share price be in three year time?
4. Assuming the rates of return indicated in the case study could be achieved, and did not change over the next three years, would any of the three alternative investment plans enable them to achieve their goal of saving a deposit for a home?
5. Briefly assess David and Kate differing ideas about investing in terms of the risks and returns involved. Which option is best to them, alternatively are there other options?
6. Discuss the ethical issues arising from Jeremy's advice.
7. What financial planning process should David and Kate follow?