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 $$\begin{array} { | c | c | c | c | } \hline & \text { Price } & \begin{array} { c } \text { Dividend } \\\text { Yield }\end{array} & \begin{array} { c } \text { Earnings } \\\text { per share }\end{array} \\\hline \text { IBM } & \$ 80 & 1 \% & \$ 5 \\\hline \begin{array} { c } \text { HPQ (Hewlett } \\\text { Packard) }\end{array} & \$ 20 & 2 \% & \$ 1 \\\hline \text { AAPL (Apple) } & \$ 70 & 0 \% & \$ 1 \\\hline\end{array}$$

---

Definitions:

Contract Agreement

A legally binding document that describes the terms of a deal or partnership between two or more parties.

Whole Shipment

Refers to the transportation or delivery of an entire cargo or batch of goods at one time, without dividing it into smaller consignments.

Service Level Agreement (SLA)

A formal document that defines the level of service expected from a service provider, outlining metrics, responsibilities, and penalties for non-compliance.

Contracting Method

The approach and procedures used to agree upon terms of service or product delivery between a company and its suppliers or contractors.