What the pension fund should be to finance our retirement

Assignment Help Financial Management
Reference no: EM13877916

We want to retire in 30 years, and we shall need $50,000 income per annum during our retirement which wills last 20 years. We can save $10,000 annually during the first 10 years. We estimate that from year 16 till 20 we shall return to school for a graduate degree, which will cost $40,000 yearly in actual cash flow and opportunity cost expenses. Additionally, we’ll send our niece to college for 4 years starting in year 26 from now. Her tuition will rise by 4% annually, but it will be the same every year after year 26. We would like to know what the pension fund should be to finance our retirement. Second, what annual savings should we accumulate from years 30 to 40 to be able to fund all the aforementioned expenses and our retirement? We have a discount rate of 6%. Show work and formulas

Reference no: EM13877916

Assuming there are no-arbitrage opportunities

A company just paid a dividend of 2 NOK per share. The share price before the dividend payment was 105 and the price after the payment is 102.5. The capital gain tax rate is 3

Which of these two financing packages is the better deal

Assume that you’ve been shopping for a new car and intend to finance part of it through an installment loan. the car you’re looking for has a sticker price of $18,000. a local

Calculate and explain in words all calculations

For the last 10 years you have been depositing a fixed amount into your savings account. You have been doing that once a year at the beginning of each year. You now have $35,0

Bonds make annual payments and mature

You bought one of Great White Shark Repellant Co.’s 8 percent coupon bonds one year ago for $770. These bonds make annual payments and mature 7 years from now. Suppose you dec

Coupon rate must bonds offer in order to sell at face value

General Matter’s outstanding bond issue has a coupon rate of 8.2%, and it sells at a yield to maturity of 7.25%. The firm wishes to issue additional bonds to the public at fac

What is the amount of the operating cash flow

Hot and Cold has annual sales of $982,000, annual depreciation of $127,000, and net working capital of $243,000. The tax rate is 34 percent and the profit margin is 6 percent.

What is cost of new common equity considering the estimate

Barton Industries expects next year's annual dividend, D1, to be $2.50 and it expects dividends to grow at a constant rate g = 4.1%. The firm's current common stock price, P0,

Many products will soon begin producing new product

A small manufacturing company with many products will soon begin producing a new product. The new product’s per-unit variable costs will equal $3.00. The company’s fixed costs


Write a Review

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