Susan will start attending college in september 2024 at

Assignment Help Corporate Finance
Reference no: EM13363729

Susan will start attending college in September 2024 at which time she will need $15,000 for the first year of study. Her costs at college for the next three years are estimated at $18,000, $21,000, and $24,000, respectively. Susan's father plans to make equal payments to a money market fund that yields 8%, the first payment will be in September 2012 and the last in September 2024. (a) What is the size of the annual payments the father must make if the fund is to supply Susan with the above estimates? (b) Suppose the father has just inherited a large sum of money. What amount would he have to deposit if he decides to make one lump-sum payment in September 2012.

Reference no: EM13363729

Questions Cloud

The current price of a stock is 33 and the annual risk-free : the current price of a stock is 33 and the annual risk-free rate is 6. a call options with a strike price of 32 and
Intel reports the following information on its stock : intel reports the following information on its stock options incentive programs in its december 31 2001 financial
1 suppose laura luckett believes the korean won will rise : 1 suppose laura luckett believes the korean won will rise in value against the us dollar by march and took an
Nichols corporation value of operation is equal to 500 : nichols corporation value of operation is equal to 500 million after recapitalization the firm had no debt before
Susan will start attending college in september 2024 at : susan will start attending college in september 2024 at which time she will need 15000 for the first year of study. her
You are an entrepreneur starting a biotech firm if you are : you are an entrepreneur starting a biotech firm. if you are successful the technology can be sold for 30m if
The neal company wants to estimate next years return on : the neal company wants to estimate next years return on equity roe under different leverage ratios. neals total capital
For 2012 everyday electronics reported 225 million of sales : for 2012 everyday electronics reported 22.5 million of sales and 18 million of operating costs including appreciation.
1gekay inc has 20m face value in zero coupon debt that is : 1.gekay inc. has 20m face value in zero coupon debt that is due in one year. this debt has a required return of 7 and

Reviews

Write a Review

Corporate Finance Questions & Answers

  Cvp analysis involves calculation of breakeven point in

cvp analysis involves calculation of breakeven point in units. nbsproney rogers a recent business school graduate plans

  What types of managed fund investments would you set for tom

What types of managed fund investments would you set for Tom? Include in your answer some discussion of the types of funds you would consider

  Evaluate share of the common stock

Which do you think will have the higher price (and why), a share of the preferred stock or a share of the common stock?

  Dividend and capital gain yields

Compute the dividend yield, capital gains yield, and total one-year return implied by Pauls estimates for each stock.

  Should ccc take the discount

The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount? WHY?

  What price would you bid

Assume that the relevant tax rate is 34 percent. If the no lift security company requires 10 % return on its investments what price would you bid?

  Compute the working capital and the current ratio

Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns.

  What will be the loan balance after five years

What will the monthly payments be and what will be the loan balance after 5 years?

  Total annual savings needed to be calculated considering

total annual savings needed to be calculated considering time value of money.how much would kevin and stacy have to

  Create the loan amortization schedule

Create the loan amortization schedule and create the depreciation schedule - create the schedule that combines interest expenses and depreciation expenses.

  Data casetoday is april 30 2012 and you have just started

data casetoday is april 30 2012 and you have just started your new job with a financial planning firm. in addition to

  What are the elements of financial position

What are the elements of financial position? Interrelate them and discuss their features and what are the elements of performance? Interrelate them and discuss their features.

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