Use Worksheet 11.2 to help Becky and Travis Hoffmeister, a married couple in their early 30s, evaluate

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Use Worksheet 11.2 to help Becky and Travis Hoffmeister, a married couple in their early 30s, evaluate their securities portfolio, which includes these holdings.

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a. Walt Disney Co. (NYSE; symbol, DIS): 100 shares bought in December 1997 for $28.90 per share. (The stock had a 3-for-1 split in 1998, so the Hoffmeisters now own 300 shares of DIS.)

b. Bank of America (NYSE; symbol, BAC): 250 shares purchased in December 1998 for $19.37 per share. (The stock had a 2-for-1 split in 2004, so the Hoffmeisters now own 500 shares of BAC.)

c. Oracle (NASDAQ; symbol, ORCL): 150 shares purchased in 2000 at $21.50 per share. (The stock has since had two 2-for-1 splits, so the Hoffmeisters now own 600 shares of ORCL.)

d. Exxon Mobil (NYSE; symbol, XOM): 200 shares purchased in 2001 at $37.21 per share. (The stock had a 2-for-1 split in 2001, so the Hoffmeisters now own 400 shares of XOM.)

e. The Hoffmeisters also have $8,000 in a 3-year bank CD that pays 2.63% annual interest.

1. Based on the latest quotes obtained from The Wall Street Journal (or elsewhere), complete Worksheet 11.2.

2. What’s the total amount the Hoffmeisters have invested in these securities, the annual income they now receive, and the latest market value of their investments?

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Personal Financial Planning

ISBN: 9781439044476

12th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley

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