Personal Finance 1st Edition by Jack R. Kapoor

Exercise 14

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.

On Monday, February 25, 2013, Dollar Tree’s common stock was selling for $41 a share. Using the Internet, determine the current price for a share of Dollar Tree’s common stock. Based on this information, would your investment have been profitable if you had purchased the common stock for $41 a share? (Hint: Dollar Tree’s stock symbol is DLTR.)

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