Getting A Higher Education And Taking The Starting Financial Manager Position With A Firm That Has Offered Employment
I. School versus Work
When deciding how to finance the school I would like to attend, the first thing I would do is check the current price of Apple’s stock using Yahoo! Finance, and figure out how much I would have if I were to sell all 1,000 shares that I own. As of 6/3/2016 at 10:15am, Apple’s stock is valued at $97.63 (Yahoo! Finance, 2009). Therefore, if I were to sell my 1,000 shares of the stock, I would have approximately $97,630 ($97.63 x 1,000 shares), which is obviously not enough on its own to finance an education that costs $100,000.
The next thing I would do is perform the calculations on the present value of the 1,000 EE Savings Bonds (which have denominations of $100 and a 4.25% coupon rate). According to the Treasury Direct website, the current market rate is fixed through October of 2016 at 0.10% (2016), and because this is a semiannual bond, this number gets dived by 2, leaving me with a value of I which is 0.0005. The next value to decide upon is N, which is the number of periods. Since there are 5 years remaining, multiplied by two (since again it is a semiannual bond), N=10. The next number to…