Warren buffet has been earning an annual rate of return

Assignment Help Financial Management
Reference no: EM13729267

Warren Buffet has been earning an annual rate of return of 20.5% since he started his investing company. Assume that Londo Mollari put a lump-sum $25,000 under Warren Buffet’s management since 1970, how much money would he have by Year 2010?    FV = $43,393,221.

a. below $10,000,000.

b. between $10,000,000 and $20,000,000.

c. between $20,000,000 and $30,000,000.

d. between $30,000,000 and $40,000,000.

e. more than $40,000,000.

Reference no: EM13729267

Questions Cloud

What is the ratio of market value of equity to book value : A firm has current assets that could be sold for their book value of $20 million. The book value of its fixed assets is $58 million, but they could be sold for $88 million today. The firm has total debt with a book value of $38 million, but interest ..
Considering undertaking a land improvement practice : You are considering undertaking a land improvement practice that will cost you $120 per acre to establish and an additional $8 per acre to maintain over the next 10 years. Assuming a real discount rate of 4%, what is the present value of the total co..
Define the customer buying process : Define the customer buying process. Why is it important to understand this process when deciding how to capture the customer's attention
Firms recent earnings per share and dividend per share : Suppose that a firm’s recent earnings per share and dividend per share are $2.70 and $1.70, respectively. Both are expected to grow at 7 percent. However, the firm’s current P/E ratio of 26 seems high for this growth rate. The P/E ratio is expected t..
Warren buffet has been earning an annual rate of return : Warren Buffet has been earning an annual rate of return of 20.5% since he started his investing company. Assume that Londo Mollari put a lump-sum $25,000 under Warren Buffet’s management since 1970, how much money would he have by Year 2010?
Identify which customer segments are the primary markets : Identify which customer segments are the primary and secondary markets. Your client wants to see new customer segments that might be interested in the new and improved product
Earning an annual rate of return : Warren Buffet has been earning an annual rate of return of 20.5% since he started his investing company. Assume that Londo Mollari put a lump-sum $25,000 under Warren Buffet’s management since 1970, how much money would he have by Year 2010? FV = $43..
Ratio analysis for government financial condition analysis : What general problems must be addressed in doing ratio analysis for government financial condition analysis? Do traditional solvency ratios adequately address financial condition analysis concerns? Provide your responses supported by text and other r..
The yield to maturity on a bond is the rate of return : The yield to maturity on a bond is the rate of return that equates to the present value of the bond's future cash flows with the bonds

Reviews

Write a Review

Financial Management Questions & Answers

  Financial statement analysis

Prepare income statements and vertical common-size balance sheets for both companies - Prepare ratio analyses

  What gives rise to the currency exposure at aifs

What gives rise to the currency exposure at AIFS and what would happen if Archer-Lock and Tabaczynski did not hedge at all?

  Generates after-tax cash flows

An investment of $83 generates after-tax cash flows of $38.00 in Year 1, $70.00 in Year 2, and $133.00 in Year 3. The required rate of return is 20 percent. The net present value is

  Determine the bonds face value

Draw a clear completely labeled cash flow diagram of the entire bond transcation using dollar accounts where they are are known and $X to represent the bond's face value.

  What is the value of mildreds tavern corps stock

Mildred's Tavern Corp pays an annual dividend rate of 11.80% on its preferred stock that currently returns 15.81% and has a par value of $100.00. What is the value of Mildred's Tavern Corp's stock?

  Financial index and commodity index

What do you mean by Financial index and commodity index?

  What is the present equivalent of the overhaul expenses

Major overhaul expenses of $4,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY two and will continue every three years thereafter up to and including year 14. The interest rate is 9% per year. What i..

  Use at least two capital budgeting methods

TCO F) Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. Projects A and B can be done together. Projects B and C can be done together. But Projects A and C are mutually ..

  Cost of preferred stock

(Cost of preferred stock) the preferred stock of Gator Industries sells for $35.84 and pays $2.75 per year in dividends. What is the cost of preferred stock financing? If Gator were to issue 519,000 more preferred shares just like the ones it current..

  Relation to the acceptance and completion of capital project

Agency conflicts arise when there are differences in the goals of the firm versus the personal goals of managers. What qualitative considerations are important for the mitigation of agency conflicts in relation to the acceptance and completion of cap..

  What is the amount of net capital spending

Teddy's Pillows has beginning net fixed assets of $466 and ending net fixed assets of $540. Assets valued at $314 were sold during the year. Depreciation was $32. What is the amount of net capital spending?

  K study the revenue source information contained in the

study the revenue source information contained in the report. present in a bar graph a comparison of the selected

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