Question

I am needing the following questions answered based on General Motors Company (GM), using the 2019 fiscal year 10-k report

53. Are you optimistic or pessimistic regarding the future of your chosen corporation? Explain.

54. Would you invest in the stock of the company? Explain.

55. Would you invest in the bonds of the company? Explain.

Answer 1

53. I am totally optimistic about the future of General Motors Company (GM), inspite of being weaker right now, they are still dominating the market by engine powered vehicle. The company is preparing itself to launch a large number of all electric modes vehicle in the next few years and the demand for electric vehicle is going to grow in future.

54. Yes, i would invest in the stock of the General Motors Company (GM) as it is restructuring to drive their earnings and are planning a transition to electric and self driving cars

55. No, as the company generally liquidate their bonds to maintain the liquidity of the company. Investors are demanding high yield but their is a possibility that GM's credit rating will be downgraded in next few months.