lab
orangepink
FinancialPlanning.docx
Financial Planning
Ten years ago today, you received a generous inheritance of $100,000. You immediately decided to invest the money in the stock market and not spend it.
From the pages of the S&P 500 posted on: http://en.wikipedia.org/wiki/List_of_S%26P_500_companies,
select what you consider 20 quality companies that you wanted to invest in (that existed 10 yrs. ago) and write them in column 1. Write the stock symbol in column 2 and the amount you want to invest in column 3 (minimum of $3000 investment each). If the stock split, you will have to multiply your initial investment by how many times it split. Apple and Nokia not allowed.
|
1 Company |
2 Stock Symbol |
3 Amount Invested (total of column must equal $100,000) |
4 Price of stock now (round to 1 decimal) |
5 Price of stock on 10 yrs. ago (round to 1 decimal) |
6 Change in stock price (price now ÷ price then)
|
7 Value of money today |
|
1. |
|
|
|
|
|
|
|
2. |
|
|
|
|
|
|
|
3. |
|
|
|
|
|
|
|
4. |
|
|
|
|
|
|
|
5. |
|
|
|
|
|
|
|
6. |
|
|
|
|
|
|
|
7. |
|
|
|
|
|
|
|
8. |
|
|
|
|
|
|
|
9. |
|
|
|
|
|
|
|
10. |
|
|
|
|
|
|
|
11. |
|
|
|
|
|
|
|
12. |
|
|
|
|
|
|
|
13. |
|
|
|
|
|
|
|
14. |
|
|
|
|
|
|
|
15. |
|
|
|
|
|
|
|
16. |
|
|
|
|
|
|
|
17. |
|
|
|
|
|
|
|
18. |
|
|
|
|
|
|
|
19. |
|
|
|
|
|
|
|
20. |
|
|
|
|
|
|
|
Total Value of invested money today: _________
|
1) Go to http://www.google.com/finance to determine the stock symbol and the values of the stock companies from 10 years ago and today. Look for a green ‘S’ signaling a split in stock price. Type in the company where you see “Search Finance”.
2) Write the approximate stock closing price of your company from ten years ago today in column 5.
3) Write the closing price of the stock today or yesterday in column 4.
4) Determine the gain or loss and place in column 6 and how much the stock is worth today in column 7. Use the formulas below:
5) If you cannot find a value from ten years ago, then the company filed bankruptcy and the value of your investment is now $0.
If stock went down:
Example (losing value):
|
Nokia |
Nok |
5000 |
5.7 |
25 |
.23 |
$1150 |
(Stock Price now / Stock Price then) X Amount Invested
7.7 8.8 5000 = $4400
If stock went up:
Example (gaining value):
|
Apple |
AAPL |
3000 |
1005.2 |
14.4 |
69.8 |
$209,416 |
(Stock Price now / Stock Price then) X Amount Invested
7(split) X 143.6 / 14.4 3000 = $209,416
6) Add up the total value of your invested money and place in the bottom of the table
When finished, submit on Canvas.
