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!
Natasha is 30 years old and currently employed as a Tier 2 field service representative for a telephony corporation and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha has $75,000 that she inherited from her aunt. she invited this money in 10 years Treasury Bond. She is considering wither she should further her education and would use her inheritance to pay for it. She was investigating a couple of options and is asking for your help as a financial planning intern to determine the financial consequences associated with each option. Natasha has already been accepted to two programs and could start either one soon. One alternative is attaining a certification in network design. This certification would automatically promote her to a Tier 3 field service representative. The base salary for a Tier 3 representative is $10,000 more than the salary of a Tier 2 representative, and she anticipates that this salary differential will grow at a rate of 3%for as ling as she remains employed. The certification program. The average amount of time to finish the program is 1 year. The total cost of the program is $5,000 du when she enrolls in the program. Natasha does not expect to lose any income duting the certification program. Another option is going back to school for an MBA degree. With an MBA degree Natasha expects to be promoted to a manager position in her current firm. The managerial position pays $20,000 a year more than her current position. She expects that the salary differential will also grow at a rate of 3% per year as long as she keeps working. The program will take 3 years to complete, costs $25,000 per year due at the beginning of each of her three year in school. Natasha does not expect to lose any income while she is in school. Questions: 1) Following the instructions in Ch4 case, what is Natasha's discount rate when she tries to make a decision to pursue more training/education? The discount rate is 1.54 ( I fount it on the financeyahoo.com and is the correct one..so far is the only correct answer that I got) 2) What is the present value of the salary differential for completing the certification program? 3) What is the net present value of undertaking the certification program? (You subtract the cost of the program from the answer in the previous question to get the net present value). 4) What is the present value of the salary differential for completing the MBA degree? 5) What is the net present value of undertaking the MBA? (You subtract the cost of the program from the answer in the previous question to get the net present value).
What does the ethical principle of “sharing benefits” mean? all participants in the same study should receive an equal share of the benefits or subject payments. all those who belong to the population being studied will share equally from the benefit..
Magnus Credit Corp. wants to earn an effective annual return on its consumer loans of 15.25 percent per year. The bank uses daily compounding on its loans.
Stocks offer an expected rate of return of 18%, with a standard deviation of 22%. Gold offers an expected return of 10% with a standard deviation of 30%. In light of the apparent inferiority of gold with respect to both mean return and volatility, wo..
Compare and contrast the differences between US Government securities and corporate bonds.
Hartford Industries has a current ratio of 2.5, with $2.5 million in current assets. Due to sales growth, the company wants to expand accounts receivable and inventories by taking on additional short-term debt. If B.J. Industries wants to maintain a ..
Consider a hedge fund with $200 million at the start of the year. The benchmark S&P 500 index was up 16.5% during the same period. The gross return on assets is 21% and the expense ratio is 2%. For each 1% above the benchmark return the fund managers..
Firms prefer to cut dividend payments rather than borrow money to fund a short-term cash need. Share repurchases tend to increase agency costs. Maintaining a steady dividend is a key goal of most dividend-paying firms.
IM Solutions common stock sells for $42 a share and has a market rate of return of 15% per year. If the company’s last annual dividend was $1.40 per share, what is the projected annual average dividend growth rate?
What is the expected dollar cost of the money market hedge? What is the expected dollar cost of remaining unhedged? What is the expected dollar cost of the forward hedge?
You are scheduled to receive annual payments of $10,800 for each of the next 20 years. Your discount rate is 7 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of ..
During the last year, Sigma Co had Net income of $148, paid $17 in dividends, and sold new stock for $39. Beginning equity for the year was $610. What was Ending Equity?
You are bearish on GE because of the global economic slowdown and expect a sharp drop in its share price. So you short 1,000 shares of GE at $20 per share. If the initial margin requirement is 55%, how much additional collateral do you need to post? ..
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