Personal Finance 1st Edition by Jack R. Kapoor

Exercise 19

Research Information Available from Value Line

This chapter stressed the importance of evaluating potential investments. Now it’s your turn to try your skill at evaluating a potential investment in the Dollar Tree Corporation. Assume you could invest $10,000 in the common stock of this company. To help you evaluate this potential investment, carefully examine Exhibit 14-7, which reproduces the research report on Dollar Tree from Value Line. The report was published in February of 2013.

Assuming you purchased Dollar Tree’s stock on February 25, 2013, and based on your answer to question 3, would you want to hold or sell your Dollar Tree stock? Explain your answer.

Exhibit 14-7 Value Line report for the Dollar Tree Corporation