Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Your chid was just born and you are planning for his/her college education. You anticipate the annual tuition to be $60,000 per year for the four years of college. You plan on making equal deposits on your child's birthday every year starting today, the day of yur child's birht. No deposits will be made after starting college. The first tuition payment is due in exactly 18 years from today (the day your child turns 18-- no deposit required, i.e. last deposit is on 17th birthday). Assume the annual expected return on your investments is 10% over this period.
1. Calculate the annual deposit. FV (deposits) = PV (tuition payments)
2. Calculate the amount needed if only equal annual deposits are made on birthday's 5-10 inclusive. FV (deposits) = PV (tuition payments as lump sum)
3. Calculate the amount needed if two equal annual deposits are made on birthday's 5 and 13.
4. Answer part (i), now assume tuition rises 10% per year.
5. Answer part (i) assuming first deposit will be made on your child's 1st birthday. All other information is the same. What is the annual tuition payment? How does it compare to part (i)?
Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt−equity ratio of .85. It’s considering building a new $40 million manufacturing facility. This new plant is expected to generate afte..
Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred sells for $35 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required..
Tool Manufacturing has an expected EBIT of $65,000 in perpetuity and a tax rate of 35 percent. The firm has $160,000 in outstanding debt at an interest rate of 8.4 percent, and its unlevered cost of capital is 12 percent. What is the value of the fir..
ProCor, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. The company then expects to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.54 last week. ..
Project Cash Flows You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $400 per unit and sales volume to be 1,000 units in year 1; 1,2..
Corner Creation Corp preferred stock pays annual dividend of $3 per share. If the current interest rate is 5%, how much is an investor willing to pay for this preferred stock?
A manager at your company (Apple INC) is thinking about using a break-even analysis. Of what shortcomings should this manager be aware? The CFO of your company (Apple INC) states that the composite cost of capital is saucer-shaped or U-shaped. Explai..
Stock in Country Road Industries has a beta of 1.07. The market risk premium is 8 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 5 percent annual r..
Report and monitor expenditure and compare with financial plans so that recommendations are developed for key stakeholders.
The Charleston Company is a relatively small, privately owned firm. Last year the company had after-tax income of $20,000, and 15,000 shares were outstanding. The owners were trying to determine the market value for the stock, prior to taking the com..
Your division is considering two investment projects, each of which requires an up-front expenditure of $2,266,000.00. You estimate that the investments will produce the following net cash flows: Year Project A 1 $5,250,000 2 10,640,000 3 20,990,000 ..
Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,860,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd