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You Are Planning to Invest Up to $11,600 in IBM

Question 111

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You are planning to invest up to $11,600 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 $ 230 in dividends. Your broker suggests that because AAPL stocks pay no dividends, you should invest only in AAPL. Is she right
 Price  Dividend  Yield  Earnings  per share  IBM $801%$5 HPQ (Hewlett  Packard) $202%$1 AAPL (Apple) $700%$1\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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