1. Individuals That Are Self-employed May Participate In Financial Institution-administered Retirement Accounts That
1. Individuals that are self-employed may participate in Financial Institution-administered retirement accounts that offering tax-deferred benefits. These are _________________. A. 401(k) B. 403(b) C. defined benefit plan D. Keogh account E. traditional IRA 2. A(n) ______________ is an employer-offered supplemental retirement plan in which the employee chooses how funds are invested. A. 401k plan B. defined benefit plan C. Roth IRA D. traditional IRA E. under-funded plan 3. For an employee to retain her company’s pension benefits rights should she leave the firm, she must be _______________ . A. a defined contributor B. guaranteed C. insured D. invested E. vested 4. If a pension plan sponsor promises an employee a specific schedule of benefits upon retirement, the plan is a(n) _______________. A. 401k plan B. defined contribution plan C. defined benefit plan D. insured pension plan E. under-funded plan 5. Key Federal legislation passed in 1974 concerning the administration of pension plans is the ____________ . A. ERISA B. Financial Services Modernization Act C. Keogh Act D. PBGC Act E. Roth Act
A Firm Is Planning To Issue New 10-year Bonds With A Face Value Of
A firm is planning to issue new 10-year bonds with a face value of $1,000. The coupon rate is 8% paid semiannually. The expected price of the bond is $1,020. In order to issue new bonds, the firm has to pay 6% of the issuing price of the bonds. If the tax rate is 34%, what is the before-tax cost of capital? A)8.62% B)7.71% C)6.86% D)5.69% E)4.53%
(Annuity Payments:) To Pay For Your Child’s Education, You Wish To Have Accumulated $17,000
(Annuity Payments:) To pay for your child’s education, you wish to have accumulated $17,000 at the end of 10 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 14% compounded annually, how much must you deposit each year to obtain your goal?
Suppose Your Expectations Regarding The Stock Market Are As Follows: State Of The Economy
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.2 34% Normal growth 0.3 19 Recession 0.5 –14 Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean % Standard deviation %
The Stock Of Business Adventures Sells For $40 A Share. Its Likely Dividend Payout
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock price Boom $2.00 $54 Normal economy 1.20 48 Recession .95 39 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return % Standard deviation % b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return % Standard deviation %
XYZ Stock Price And Dividend History Are As Follows: Year Beginning-of-Year Price Dividend Paid
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 130 $ 5 2011 $ 144 $ 5 2012 $ 120 $ 5 2013 $ 125 $ 5 An investor buys six shares of XYZ at the beginning of 2010, buys another three shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all eigth remaining shares at the beginning of 2013. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic mean % Geometric mean % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 1/1/2010 $ 1/1/2011 1/1/2012 1/1/2013 b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return %
Assume That You Manage A Risky Portfolio With An Expected Rate Of Return Of
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 47%. The T-bill rate is 5%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. a. What is the expected return and standard deviation of your client’s portfolio? (Round your answers to 2 decimal places.) Expected return % per year Standard deviation % per year b. Suppose your risky portfolio includes the following investments in the given proportions: Stock A 31% Stock B 31% Stock C 38% What are the investment proportions of your client’s overall portfolio, including the position in T-bills? (Round your answers to 2 decimal places.) Security Investment Proportions T-Bills % Stock A % Stock B % Stock C % c. What is the reward-to-volatility ratio (S) of your risky portfolio and your client’s overall portfolio? (Round your answers to 4 decimal places.) Reward-to-Volatility Ratio Risky portfolio Client’s overall portfolio
Problem 5-13 Assume That You Manage A Risky Portfolio With An Expected Rate Of
Problem 5-13 Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 47%. The T-bill rate is 4%. Your risky portfolio includes the following investments in the given proportions: Stock A 31 % Stock B 31 % Stock C 38 % Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 10%. a. What is the proportion y? (Round your answer to 2 decimal places.) Proportion y b. What are your client’s investment proportions in your three stocks and the T-bill fund? (Round your intermediate calculations and final answers to 2 decimal places.) Security Investment Proportions T-Bills % Stock A % Stock B % Stock C % c. What is the standard deviation of the rate of return on your client’s portfolio? (Round your intermediate calculations and final answer to 2 decimal places.) Standard deviation % per year
Problem 5-18 You Manage An Equity Fund With An Expected Risk Premium Of 13%
Problem 5-18 You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.) Expected return % Standard deviation %
You Manage An Equity Fund With An Expected Risk Premium Of 11% And A
You manage an equity fund with an expected risk premium of 11% and a standard deviation of 24%. The rate on Treasury bills is 6.2%. Your client chooses to invest $80,000 of her portfolio in your equity fund and $20,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund? (Round your answer to 4 decimal places.) Reward-to-volatility ratio
Question To Answer: From A Financial Management Perspective What Are The Next Steps: How
Question to answer: From a Financial Management Perspective what are the next steps: How can the situation be resolved? What challenges are to be expected? What went wrong with previous budgets, why were they approved? Could the organization keep going 2 more yrs?
Please Describe In Detail The Different Elements Form Your Finance Class That You Used
Please describe in detail the different elements form your Finance class that you used in this class, including developing Financial Statements, cost of capital, financing, budgeting, foreign exchange, and financial strategy. any elements which is related to financial course. just send me.
Assume That You Manage A Risky Portfolio With An Expected Rate Of Return
Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 45%. The T-bill rate is 6%. Stock A 29 % Stock B 38 % Stock C 33 % A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio’s standard deviation will not exceed 35%. a. What is the investment proportion, y? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Investment proportion y % b. What is the expected rate of return on the overall portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return %
Yield To Maturity: The Bond Shown In The Following Table Pays Interest Annually. Par
Yield to maturity: The bond shown in the following table pays interest annually. Par value Coupon interest rate Years to maturity Current value Copy to Clipboard Open in Excel $100100 77% 1010 $5050 a. Calculate the yield to maturity (YTM) for the bond. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain. a. The yield to maturity (YTM) for the bond is nothing %. (Round to two decimal places.)
Calculate The Value Of Each Of The Bonds Shown In The Following Table, All
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. ( Bond Par Value Coupon interest rate Years to maturity Required stated annual return Copy to Clipboard Open in Excel A $1 comma 0001,000 88 % 1111 99 % B 500500 1212 2020 1111 C 100100 1414 44 1414 The value of bond A is $nothing . (Round to the nearest cent.)
Calculate The Value Of Each Of The Bonds Shown In The Following Table, All
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Bond Par Value Coupon interest rate Years to maturity Required stated annual return Copy to Clipboard Open in Excel A $1 comma 0001,000 88 % 1111 99 % B 500500 1212 2020 1111 C 100100 1414 44 1414 The value of bond A is $931.08931.08 . (Round to the nearest cent.)The value of bond B is $nothing . (Round to the nearest cent.)
1. Construct A Loan Amortization Schedule For A 15-year, 7.25% Loan Of $7,000,000. The
1. Construct a loan amortization schedule for a 15-year, 7.25% loan of $7,000,000. The loan requires equal, end-of-year payments, and interest is compounded monthly. – What is the total amount of interest paid over the life of the loan? 2. Re-construct this amortization schedule assuming that interest is compounded annually. – What total amount of interest is paid over the life of the loan? – What is the difference between those total interest amounts? 3. Assume that in sections 1 and 2 above, there is a requirement to repay the whole remaining loan balance at the end of the tenth year, immediately after making the last equal payment. What is the loan balance to be paid in section 1? What is the loan balance to be paid in Section 2? What is the difference between these amounts? B.- 1. Construct a loan amortization schedule for a $3,000,000, 3-year loan, made at 6.50% quoted annual rate. Interest is compounded daily, and the loan requires equal end-of-period monthly payments.(use 360-day year for computation) – What is the total amount of interest paid on this loan?
Bond Valuationlong Dash—Semiannual Interest Calculate The Value Of Each Of The Bonds Shown In The
Bond valuationlong dash—Semiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Bond Par Value Coupon interest rate Years to maturity Required stated annual return Copy to Clipboard Open in Excel A $1 comma 0001,000 88 % 1111 99 % B 500500 1212 2020 1111 C 100100 1414 44 1414 The value of bond A is $931.08931.08 . (Round to the nearest cent.)The value of bond B is $540.12540.12 . (Round to the nearest cent.)The value of bond C is $nothing . (Round to the nearest cent.)
Blissful Mining Ltd Announced Will Be Undertaking A Rights Issue To Fund A $82M
Blissful Mining Ltd announced will be undertaking a rights issue to fund a $82M project. After the market announcement Blissful Petroleum shares were trading at $3.19 Each new share will be issued at $2.73 and once the rights issue has been completed there will be a total 415M shares outstanding. How many shares are on issue TODAY ?
Calculate The Value Of A $1 Comma 0001,000-par-value Bond Paying Quarterly Interest At An
Calculate the value of a $1 comma 0001,000-par-value bond paying quarterly interest at an annual coupon interest rate of 99% and having 66 years until maturity if the required return on similar-risk bonds is currently a 1515% annual rate paid quarterly. The present value of the bond is $nothing . (Round to the nearest cent.)
Assume That The Financial Management Corporation’s $1 Comma 0001,000-par-value Bond Has A 7.100 %7.100%
Assume that the Financial Management Corporation’s $1 comma 0001,000-par-value bond has a 7.100 %7.100% coupon, matures on May 15, 2027, has a current price quote of 94.70794.707 and a yield to maturity (YTM) of 8.583 %8.583%. Given this information, answer the following questions: a. What was the dollar price of the bond? b. What is the bond’s current yield? c. Is the bond selling at par, at a discount, or at a premium? Why? d. Compare the bond’s current yield calculated in part b to its YTM and explain why they differ. a. The dollar price of the bond is $nothing . (Round to the nearest cent.)
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