Customer Service Chat
Get quote & make Payment
#Corporate Finance Homework, Other Engineering
#As an investment advisor you have been approached by a client called Ramesh, who wants some help in investment related matters.
Ramesh is currently 45 years old and has Rs 6, 00,000 in the bank. He plans to work for 15 more years and retire at the age of 60. Ramesh''s present salary is Rs 4, 00,000 per year. He expects his salary to increase at the rate of 12% per year until his retirement.
Ramesh has decided to invest his bank balance and future savings in a portfolio in which stocks and bonds will be equally weighted. Assume that these proportions will be maintained by him throughout. He also believes that bonds will provide a return of 7% and stocks a return of 13%.
Once Ramesh retires at the age of 60 he would like to withdraw Rs 5,00,000 per year from his investments for the following 15 years as he expects to live up to the age of 75 years. He also wants to give Rs 10, 00,000 to his children at the end of his life. How much money would he need 15 years from now?
How much should Ramesh save each year for the next 15 years to be able to meet his investment objectives spelt out? Assume that the savings will occur at the end of each year.
Suppose Ramesh wants to donate Rs 2, 00,000 each year in the last 3 years of his life to a charitable cause. Each donation would be made at the beginning of the year. How much money would he need when he reaches the age of 60 to meet this specific need? Ignore the tax factor to answer these questions.
Posted Date: 5/30/2012 7:43:31 AM | Location : United States
Ask an Expert
#Corporate Finance Homework, Assignment Help, Ask Question on #Corporate Finance Homework, Get Answer, Expert's Help, #Corporate Finance Homework Discussions
Write discussion on #Corporate Finance Homework
Your posts are moderated
Write your message here..
MICRO PROCESSOR, Describe the operation an 8086 will perform when it excute...
Describe the operation an 8086 will perform when it excutes ADD AX,BX
Riveting, Riveting is a fixed fastening procedure in which the end of the ...
Riveting is a fixed fastening procedure in which the end of the metal pin is pressed over or spread out by hammering operation. Wrought iron and steel are used for the riveting an
Agric Engineering, soil and water and irrigational projects
soil and water and irrigational projects
Fire risk assessment in uk - fire protection engineering, Fire risk assessm...
Fire risk assessment in UK: In the UK FRAs are required by law in all commercial premises. But the FRAs are not the same as described in NFPA 551. The principles remain the
ZENER DIOD, WHAT IS ZENER DIAOD?
WHAT IS ZENER DIAOD?
#title.welding., Does the atmospheric pressure inside of a tube aproximatel...
Does the atmospheric pressure inside of a tube aproximately a half an inch in diameter cause resistance against an end plug being flash welded to the end of it and what would be th
Basic engine design considerations, BASIC ENGINE DESIGN CONSIDERATIONS ...
BASIC ENGINE DESIGN CONSIDERATIONS Effect of engine size: The two parameters involved are the diameter, d and stroke, L of the engine. The effect of doubling each of this
Communication overhead.., what is communication overhead in networking?what...
what is communication overhead in networking?what are the types of overhead?How to reduce communication overhead in broadcasting?
Isdn, Explain the meaning of numbering and addressing in ISDN network.
Explain the meaning of numbering and addressing in ISDN network.
Fibre optics communications, explain the fibre optic communication system w...
explain the fibre optic communication system with block diagram
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.