Compounding Question/Finance/Math??
Over a Five year-period, an original principal of $2000 accumulate to $2950 in an vindication which interest was compounded quarterly. Determine the important rate of interest??I keep getting 7.84% but the answer at the stern says 8.08%
Answers: 2950=2000(1+r/4)^(5*4)
is how you set this one up, solving for "r"
r = 8.07849%
Is GE a moral company to invest contained by next to a DRIP?
I was looking to start investing and a DRIP plan sounds well-mannered to me. GE is a large diversified conglomerate that isn't imagined to fall apart anytime soon. They will grow but they aren't a big growth company. I still have to look up what they own been paying for dividends though. If not any other companies? Maybe CSX?Answers: We won't enjoy the sort of market collapse that we have from 2000 to 2003, or if we do it will be much shorter in duration. The simple rationale is that stocks in 2007 be not remotely as overvalued as they were is 2000.
They are both fitting companies. CSX is the hotter company right now, which is both honest and bad.
CSX of late put in a great profits report, so its stock price just go up a lot. But this souk is so bad that it might come down rather a bit. Also, Warren Buffett has be buying railroads, so the integral industry is more expensive than it would otherwise be. And the dividend is rather low. Still, it is a fitting company.
GE's stock price is down and might go a disinterested bit lower, and its dividend yield is pretty dignified. So I would buy some right here, but buy in smaller pieces anticipating that it may be in motion down more.
The GE div. is $0.31 per quarter or an annual yield of 3.65% at its current price of $34. This is a apt choice for a very long occupancy holding in a DRIP for the reason you mention. Warren Buffett owns it too.
Don't put all your eggs surrounded by one basket. Other great dividend paying companies are PEP, VFC, MO, COP. PEP (Pepsico) is interesting because the div. verbs is medium small, but the div. growth rate have been fairly high. So that over a long time, the eventual dividend concede based on today's investment, will be severely high.
GE is a correct company. That said I held GE stock from 2001 to 2007 w/ DRIP. Total return was smaller number than 3% per year. I sold right before the recent open market down-turn. GE has alot to gain from the worldwide growth trend, but, we are in a undergo market and a recession, so almost adjectives companies are going to do down in the short permanent status. In my humble opinion. I'd consider staying surrounded by cash or possibly even some of the short ETFs like QID SDS DXD DOG etc. till this current mess is over. It's a bubble, the ending bubble (tech) went from a blossoming in 2000 to a low surrounded by 2003 and finaly got stern to break even in 2007. These things run time.
Tempur pedic TPX increased contained by almost every category on its annual report dec31 2007 why is it at an 52 low?
also forecasted 2008 with increased proceeds per share..increased sales..increased profitability! am i missing something or should i leap in immediately?Answers: <<<Tempur pedic TPX increased in almost every category on its annual report dec31 2007 why is it at an 52 low?>>>
Here is one explanation:
http://biz.yahoo.com/ap/080125/tempur_pe...
Here is another
"If housing slows so do mattresses, say Pete Najarian." (Pete Najarian sells investment direction to subscribers of Optionmonster.)
http://www.cnbc.com/id/22842588/?__sourc...
<<<am i missing something or should i jump surrounded by now?>>>
If you be not aware of the news from the first sector of this answer you were missing something.
You still might want to bound in presently, if you believe the size of the drop in the stock price be not justified by the word.
In any case, it is your money and your decree.