Disseminate fund information and effect fund transactions

Assignment Help Financial Management
Reference no: EM13977709

The mutual fund industry is beginning to use the Internet to disseminate fund information and effect fund transactions. The Internet also makes it much easier for savers to obtain information about individual securities and much cheaper to trade these securities. As the Internet develops, will savers make their investment directly in individual securities rather through financial intermediaries such as mutual funds?

Reference no: EM13977709

Questions Cloud

Acquired knowledge of time value of money : Give an example of how your newly acquired knowledge of Time Value of Money (TVM) calculations could better prepare you for the next negotiation or big-ticket purchase in your life.
About NPV as Cost of Capital changes : Dane Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $56,000 and will generate after-tax cash inflows of $12,000 per year for 8 years. For each of the costs of capital listed, (1) calculate the ne..
First retirement income amount : Suppose that you are 25 years old. You figure that your income will be such that you will be able to save for the next 25 years, until age 50 (first deposit at age 26 and last deposit at age 50). At age 50, your income will just cover your expenses. ..
How much must you deposit at the end of each year : How much must you deposit at the end of each year for 15 years, to be able to withdraw $500 at the end of year 10 and $1000 at the end of year 15 if your savings earn interest at an annual rate of 7%?
Disseminate fund information and effect fund transactions : The mutual fund industry is beginning to use the Internet to disseminate fund information and effect fund transactions. The Internet also makes it much easier for savers to obtain information about individual securities and much cheaper to trade thes..
Payroll program : Joe Blow has written a payroll program for her company to use and has made a mistake in the code. He has computed the gross pay by dividing the hours worked by the hourly rate instead of multiplying the two amounts. What is this mistake called?
Value the equity using the FCFE method : Using the financial statements and other information that you have for MPR, and assuming a 5% perpetual growth rate in the FCFE, value the equity using the FCFE method.
The bottom-up approach to computing the operating cash flow : The bottom-up approach to computing the operating cash flow applies only when: A. both the depreciation expense and the interest expense are equal to zero. B. the interest expense is equal to zero. C. the project is a cost-cutting project. D. no fixe..
A perpetuity differs from an annuity because : A perpetuity differs from an annuity because: A. perpetuity payments vary with the rate of inflation. B. perpetuity payments vary with the market rate of interest. C. perpetuity payments are variable while annuity payments are constant. D. perpetuity..

Reviews

Write a Review

Financial Management Questions & Answers

  Supply is operating at full capacity with annual sales level

Nagle Hardware Supply is operating at full capacity with an annual sales level of $689,700 and assets of $468,000. The profit margin is 10 percent. What is the required addition to assets if sales are to increase by 7 percent? $3,276 $4,680 $28,400 $..

  Annual percentage rate of prime rate plus

Your Office Supply has a $42,500 line of credit that charges an annual percentage rate of prime rate plus 3%. Their starting balance on March 1 was $10,600. On March 5, they borrowed $7,500. On March 14, the business made a payment of $3,300, and on ..

  What is the best estimate of current stock price

Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estima..

  Relevant cash flow when deter- mining incremental cash flows

Which of the following is not considered a relevant cash flow when deter- mining incremental cash flows for a new project?

  Irrevocable trust over the revocable trust

An irrevocable trust has certain advantages not provided by a revocable trust. Which of the following is (are) advantages of the irrevocable trust over the revocable trust?

  Streams of payments

What is the accumulated sum of each of the following streams of payments?

  How much does cartwright need to borrow and when

How much does Cartwright need to borrow and when? Explain by citing specifics from the forecast - does Cartwright have the ability to pay the interest expense? Explain by citing specifics from the forecast.

  Common stock-preferred stock and market

You are given the following information for Lightning Power Co. Assume the company’s tax rate is 38 percent. Common stock: 370,000 shares outstanding, selling for $55 per share; the beta is 1.11. Preferred stock: 15,000 shares of 5 percent preferred ..

  Growing quickly-what is the current share price

Jen's Fashions is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. The required return is 12 percent and the company just paid a $3.80 annu..

  Find the price of an equivalent bond without the call option

ABC Manufacturing Company makes baseball equipment. The company decides to issue a callable bond that it expects to sell for $820 per bond. If the bond is a twenty-year semi annual bond with a 8% coupon rate and a current yield to maturity of 9%, wha..

  Payback period considers timing and amount of cash flows

The payback period rule states that you should accept a project if the payback period is less than one year. The payback period considers the timing and amount of all of a project's cash flows. You are analyzing a short-term project with conventional..

  Financial sense-what is break-even cost per kilowatt hour

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.39 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd