Problem

For .Exercises, use the following data for publicly traded recreational vehicle companies....

For .Exercises, use the following data for publicly traded recreational vehicle companies. The information was accurate as of July 16, 2004.

Company

Share Price (dollars)

Earnings/

Share

(dollars)

Dividend/

Share

(dollars)

Harley-

Davidson,

Inc. (HDI)

62.70

2.56

0.40

Polaris Industries Inc. (PII)

50.50

2.50

0.92

Winnebago Industries Inc. (WGO)

33.42

1.80

0.20

Source: moneycentral.msn.com.

Investment Choices An investor has up to $4000 to invest in Harley- Davidson, Inc., and Polaris Industries, Inc. The investor wants to earn at least $60 in dividends while maximizing total earnings. How many shares of each company’s stock should the investor buy? (Assume that portions of shares may be purchased.)

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Solutions For Problems in Chapter 4.2