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Finance Questions

Finance Questions

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1. You are planning to save for retirement over the next 25 years. To do this, you will invest $790 a month in a stock account and $390 a month in a bond account. The return of the stock account is expected to be 9.9 percent, and the bond account will pay 5.9 percent. When you retire, you will combine your money into an account with a 6.9 percent return.

 

How much can you withdraw each month from your account assuming a 20-year withdrawal period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

 

 

2 You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $30,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.

 

If the interest rate is 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Present Value of Option 1:

Present Value of Option 2:

 

3 You’re prepared to make monthly payments of $230, beginning at the end of this month, into an account that pays 6.4 percent interest compounded monthly.

 

How many payments will you have made when your account balance reaches $14,000? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

 

4 An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company:

First birthday: $ 850

Second birthday: $850

Third birthday: $ 950

Fourth birthday: $ 850

Fifth birthday: $ 1,050

Sixth birthday: $ 950

 

After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years.

 

Find the future value of the payment at the child’s 65th birthday. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Finance Questions essay paper

Finance Questions

ORDER A PLAGIARISM FREE PAPER NOWQuestion 1:

Why do you think corporate finance is important to all managers? Describe why a manager needs to understand the characteristics and importance of financial markets, including their liquidity, competitiveness, and efficiency. Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

Question 2:

Explain why money has a time value. Explain how the time value of money (TVM) might possibly impact your life now or in the future. Give an example, from your own experiences if possible, to support your explanation. Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

 

Question 3:

What is the relationship between risk and return on investment (ROI)? What level of risk are you currently able to accept? What are the factors your decision is based on? Your journal entry must be at least 200 words in length. No references or citations are necessary

 

Question 4:

Think about a few personal projects you have been involved with in the last year or so. A project could be anything from planning a vacation, building a patio deck, or even mowing the grass or painting a room. Reflect on the capital budgeting you had to do in order to complete these projects. What types of projects required the least detailed and the most detailed analysis? Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

 

Question 5:

Give an example of a possible agency conflict between inside owners/managers and outside shareholders. What could be done to mitigate this issue? Your journal entry must be at least 200 words in length. No references or citations are necessary

Question 6:

In 2012, Apple issued its first dividend to common stockholders at $0.38 per share. In your opinion, was the decision to pay cash dividends to their shareholders a good decision? Please explain your reasoning. Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

 

 

 

Question 7:

Select a currency other than the U.S. dollar (such as the Euro, Swiss Franc, Yen, or another currency of your choosing), and research the current exchange rate between it and the U.S. dollar. If the chosen currency against the U.S. dollar depreciates, can the U.S. dollar buy more or less of the chosen currency? Please explain. Your journal entry must be at least 200 words in length. No references or citations are necessary.

Question 8:Finance Questions

How can information you learned in this course be applied to your life and/or work to increase your future success? Based on the company you selected to study for this unit, list and describe three reasons why risk management might increase the value of the firm. Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

Finance Questions essay paper

Finance Questions

ORDER A PLAGIARISM FREE PAPER NOWQuestion 1:

Why do you think corporate finance is important to all managers? Describe why a manager needs to understand the characteristics and importance of financial markets, including their liquidity, competitiveness, and efficiency. Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

Question 2:

Explain why money has a time value. Explain how the time value of money (TVM) might possibly impact your life now or in the future. Give an example, from your own experiences if possible, to support your explanation. Your journal entry must be at least 200 words in length. No references or citations are necessary.Finance Questions

 

Question 3:

What is the relationship between risk and return on investment (ROI)? What level of risk are you currently able to accept? What are the factors your decision is based on? Your journal entry must be at least 200 words in length. No references or citations are necessary

 

Question 4:Finance Questions

Think about a few personal projects you have been involved with in the last year or so. A project could be anything from planning a vacation, building a patio deck, or even mowing the grass or painting a room. Reflect on the capital budgeting you had to do in order to complete these projects. What types of projects required the least detailed and the most detailed analysis? Your journal entry must be at least 200 words in length. No references or citations are necessary.

 

Question 5:Finance Questions

Give an example of a possible agency conflict between inside owners/managers and outside shareholders. What could be done to mitigate this issue? Your journal entry must be at least 200 words in length. No references or citations are necessary

Question 6:

In 2012, Apple issued its first dividend to common stockholders at $0.38 per share. In your opinion, was the decision to pay cash dividends to their shareholders a good decision? Please explain your reasoning. Your journal entry must be at least 200 words in length. No references or citations are necessary.

 

 

 

Question 7:Finance Questions

Select a currency other than the U.S. dollar (such as the Euro, Swiss Franc, Yen, or another currency of your choosing), and research the current exchange rate between it and the U.S. dollar. If the chosen currency against the U.S. dollar depreciates, can the U.S. dollar buy more or less of the chosen currency? Please explain. Your journal entry must be at least 200 words in length. No references or citations are necessary.

Question 8:

How can information you learned in this course be applied to your life and/or work to increase your future success? Based on the company you selected to study for this unit, list and describe three reasons why risk management might increase the value of the firm. Your journal entry must be at least 200 words in length. No references or citations are necessary.