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Investing in Apple Inc

In: Business and Management

Submitted By holderrp
Words 3218
Pages 13
FIN 534-Financial Management
3 March 2015

In my paper, I will provide the rationale for selecting Apple Incorporation for which to invest. I will also determine the profile of the investor for which this company may fit. I will then use five financial ratios to analyze the past three years of the company’s financial data. Based on my review I will determine the risk level of the company indicating key strategies they may use in order to minimize the perceived risk. Finally, I will provide my recommendations of Apple Incorporation as a potential investment opportunity.

Investing in Apple Incorporation
Rationale for Investment
Consideration of several factors is imperative while making investment decisions. An investor should evaluate the company’s growth potential before channeling their funds for investment (Brigham & Houston, 2011). Apple is renowned for its leadership in innovations. The company has revolutionized the technology industry through a remarkable change. The introduction of iPhones and the evolvement of the iPhones to the latest iPhone 6 and six plus is incredible. Innovation continues to take a lead in Apple Inc. With the introduction of Apple watch and Apple apps, there is a positive outlook for Apple stock for potential investors. The company has invested in a vertical acquisition to spur growth. For instance, Apple acquired Beats Electronics, which has gone a long way towards growing Apple’s business. There are higher prospects of future growth in Apple.
Apple’s brand equity ensures high demand for its products. Most people have developed a strong appeal towards its products since they are aimed at transforming lives. Every product and service offered by Apple provides the users with unique benefits. The products and services provide the customer with all...

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