You Are Planning to Invest Up to $16,000 in IBM

question 74

True/False

You are planning to invest up to $16,000 in IBM, HPQ, and AAPL shares. You desire to maximize your share of the companies' earnings but, for tax reasons, want to earn no more than $320 in dividends. Your broker suggests that because AAPL stocks pay no dividends, you should invest only in AAPL. Is she right $$\begin{array} { | c | c | c | c | } \hline & \text { Price } & \begin{array} { c } \text { Dividend } \\\text { Yield }\end{array} & \begin{array} { c } \text { Earnings } \\\text { per share }\end{array} \\\hline \text { IBM } & \$ 80 & 1 \% & \$ 5 \\\hline \begin{array} { c } \text { HPQ (Hewlett } \\\text { Packard) }\end{array} & \$ 20 & 2 \% & \$ 1 \\\hline \text { AAPL (Apple) } & \$ 70 & 0 \% & \$ 1 \\\hline\end{array}$$

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Definitions:

Collective Settlements

Communities where people live together sharing responsibilities and resources, often associated with kibbutzim in Israel.

Emotion-focused Coping Skills

Strategies aimed at managing and reducing the emotional distress associated with stressful situations rather than directly tackling the root problem.

Problem-focused Coping Skills

Techniques aimed at addressing and managing the source of stress directly.

Subjective Well-being

An individual's self-reported assessment of their moods, emotions, and satisfaction with life.