People over the decades often wonder about how to


People over the decades often wonder about how to successfully mange their investments. The purpose of this paper is to answer the question if it is better to purchase a stock that pays a dividend to their shareholders (value stocks) or buy a stock that pays no dividends and simply reinvests money back into the company (growth stock).

Our parameters are as follows: We take $1000 investment into each company to better see a profit or loss margin Use 1 year ago prices for use of the individual investors that are penetrating the market in 2007. Take 8-16-06 prices and compare them to 8-16-07 prices Take "like companies" within the same business identification class We have selected 4 technology companies (2 value & 2 growth) We have also selected 2 service companies (1 value & 1 growth) Technology:

Value: 8-16-06 price Shares Dividends Value Today MSFT $26.74 37.39716 .76 $1032.91 IBM $81.30 12.30012 2.4 $1330.38 Original Investment: $2000 Today's value: $2330.38 Profit: $330.38 GOOG $285.65 3.500788 NO $1684.68 ORCL $13.30 75.18797 NO $1419.54 Original Investment: $2000 Today's value: 3104.23 Profit: $1104.23 Services: THI $24.81 40.30633 .314 $1289.96 Original Investment: $1000 Today's value: $1289.96 Profit: $289.96 SBUX $30.64 32.63708 NO $857.70 Original Investment: $1000 Today's value: $857.70 Loss: <-$142.30> Null Hypothesis: Ho: average loss/gain of value stock = Average loss/gain of Growth stock H1: Average loss/gain of value stock <>Average loss/gain of Growth Stock

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