Problem
• What are the calculations involved with pricing a bond and a stock?
• Choose a stock that is publicly traded and explain how you think the future potential of the stock warrants the price it sells at today - please explain and support with terms and concepts from this class material?
• Calculate the current return on a stock of your choice and compare it to returns on bonds. Which is better to invest in presently a stock or a bond in this company and why?
Use in text citations.
Reference: Ross, S.A., Westerfield, R., & Jordan, B. D. (2011). Fundamentals of Corporate Finance (Tenth edition). New York, NY. McGraw-Hill/Irwin Chapter 8.