Assume you could invest 100,000 in common stock of this company. To help you evaluate this potential investment, carefully examine exhibit 14-7 which reproduces the research report on AT & T from value line. The report published in March of 2010.
1. Based on the research provided by Value Line, would you buy AT&T’s stock? Justify your answer.
3. On Wednesday, May 19, 2010, AT&T’s common stock was selling for $25 a share. Using a newspaper or the Internet, determine the current price for a share of AT&T’s common stock. Based on this information, would your investment have been profitable if you had purchased the stock for $25 a share? (Hint: AT&T’s stock is listed on the New York Stock Exchange and its stock symbol is T.)
4. Assuming you purchased AT&T’s stock on May 19, 2010, and based on your answer to question 3, would you want to hold or sell your AT&T stock? Explain your answer.