A: Introduction
There are several factors that one ought to take into consideration before investing in a firm. These factors include, but are not limited to, the enterprise's performance, the caliber of the management in place, the financial condition of the Company, and future prospects of the business. However, it is essential to note that one key factor that could be overlooked, despite its relevance, is the profile of the client seeking to invest in a firm. This is an incredibly important consideration given that each client has different temperament and investment objectives (i.e., protect savings from inflation, grow wealth, etc.). As a financial manager whose key functions include researching investments for clients, I intend to highlight the rationale for selecting Apple Inc. as the stock of choice and why the preferred stock is a suitable investment alternative for my client.

B: Rationale for Stock Selection

Apple Inc. happens to be one of the world's leading tech companies. Below is an overview of the Company:

0. History: The Company was founded on April 1, 1976, by two budding entrepreneurs who elected to drop out of college at the time and pursue their dream (Terrell, 2008). At present, the Company has its headquarters in Cupertino, California.

0. Primary products/services provided by the firm: The Company offers a wide range of products (and services). Some of the hardware devices that the Company manufactures and markets include, but they are not limited to mobile communication devices (such as the iPhone), tablets, and computers, as well as assorted accessories and wearables. It is also important to note that the Company also provides various services to its diverse clientele – including offering digital applications and content, and networking solutions.

0. Financial Overview: Apple's profitability has grown immensely since its inception. In its latest financial statements, the Company reported a net income of 55 billion (Apple Inc., 2020). This was a profit growth of 14% over three years. The Company had registered a profit of 48 billion in the year 2017. The said profit growth is of vital interest on this front, given that, as Brigham and Houston (2020) point out, profit happens to be the most important motivating factor in any economic undertaking. Thus, by growing its earnings, Apple appears keen on securing the wellbeing of its stockholders.

C: Client Profile

The client, in this case, was referred to me by a mutual friend. As a financial manager, one of my key objectives is ensuring that the investments I select for clients suit their needs and expectations. For this reason, I cannot overstate the relevance of developing the client's profile. Indeed, as Higgins (2018) observes, "client's profiles are instrumental in efforts to determine how comfortable clients will be with the outcome of a particular decision."

0. Age: 32 years old

0. Marital Status: Married

0. Profession: Entrepreneur – Client runs a car rental business in New York City. The business has been in operation for the last seven years. He is also in the process of setting up an online clothing store.

0. Investment goals: The client is keen on growing his wealth. He has a high appetite for risk. It should be noted that in any investment or portfolio, two of the critical factors that ought to be taken into consideration are risk and return (Keown, Martin, and Titman, 2017). While the client in this case wants a high return, I selected the current stock owing to the need to ensure that there is a balance between the possible return and the potential risk.

0. Other: The client does not presently own the stock of any other company.

D: Ratio Analysis

In seeking to assess the financial health of Apple, it would be prudent to conduct ratio analysis. The ratios highlighted in this section will be useful indicators of not only the financial situation of Apple, but also its performance over time. Towards this end, a total of five ratios will be taken into consideration. Table 1 below identifies the said ratios and how they have changed over the last three years.

1. Current Ratio

This is a rather important liquidity ratio that would enable me to determine how capable Apple is to settle its obligations in the short-run. It is clear from the assessment above that over the last three years, the company has had a current ratio of more than 1. This is an indication that Apple’s assets (i.e. short-term assets such as cash) exceed its debts (due in a year or less). As a general rule, a...…opposed to its common stock. This is more so the case given that these would give the client a priority over Apple’s income. Essentially, as a priority shareholder, he would be paid dividends before common shareholders. In the unlikely event that Apple is liquidated, the client would be amongst the first to lay a claim to the assets of the company.

3. Client Risks

One major risk on the client’s front is suffering a disability that interferes with his physical or cognitive faculties. This is more so the case given that such an occurrence would limit his ability to make sound or proper investment decisions to advance his businesses and monitor the performance of his stocks. This would likely threaten his financial stability.

The client could in this case consider taking disability insurance. In basic terms, this particular kind of insurance would guarantee the client some income if, due to a disability, he becomes unable to perform the various tasks that enable him to make a living. There are a wide range of providers that the client could choose from. The key considerations he ought to make in his selection of the best provider include, but they are not limited to, the benefit period and price of the said policy.

F: Recommendation of Stock to the Client

In my opinion, Apple would be an ideal stock to invest in. My assertion is in this case founded on a number of reasons. To begin with, the company continues to be a leader in the tech realm. Indeed, as Montgomerie and Roscoe (2013) observe, “current explanations of Apple's stunning performance and success tend to focus on innovation in product design or marketing strategy” (291). As a matter of fact, some of the innovations that the company has come up with in the past have ended up being a huge success. This is more so the case when we consider its iPhone mobile device, the Mac computer, and the iPod. If the company continues its innovative spirit, it will likely continue to be as competitive as it has been in the past.

Further, it would also be prudent to note that Apple’s profitability continues to grow year after year. For instance, over the last three years, the company has had a 14%…