User Account

All Pages

What is annual effective rate earned on investment portfolio

Assignment Help Financial Management
Reference no: EM131085672

A company invests $1,000,000 at the beginning of the year. It adds another $250,000 at the end of the first quarter, withdraws $350,000 at the end of the second quarter, adds $145,000 at the end of the third quarter, and withdraws 450,000 of the remaining funds at the end of the year. It earns $20,000 of interest in the first quarter, $17,000 in the second quarter, $12,000 in the third quarter, and $29,000 in the fourth quarter.

What is the annual effective rate earned on the investments portfolio?

What rate of return would have been calculated if only looked at the ending portfolio value as compared with the beginning $1, 000,000 investment?

Reference no: EM131085672

Questions Cloud

List and explain the two types of diabetes : List and explain the two types of diabetes. How are they different? How are they the same?
Assuming the securities have equal default risk : Reggie White, a corporate treasure, is trying to decide which of two 1-year securities to purchase: a negotiable CD with a nominal yield of 6 percent or a municipal security with a nominal yield of 4.25 percent. His company s marginal federal tax rat..
Reducing the price of health care : The focus in health care reform is cost control in light of annual double-digit inflation since the late 1990s and the consumption of nearly 17% of the gross domestic product (GDP) in 2009 (more than any other country in the world).
Describe your moral problem and identify the ethical issue : Describe your moral problem and identify the ethical issue(s) your problem involves. State the central question your problem raises. Indicate which moral theories you plan to use to work through this question.
What is annual effective rate earned on investment portfolio : A company invests $1,000,000 at the beginning of the year. It adds another $250,000 at the end of the first quarter, withdraws $350,000 at the end of the second quarter, adds $145,000 at the end of the third quarter, and withdraws 450,000 of the rema..
Document the steps of the process : Note:  Be sure to document the steps of the process, create a visual image (flow chart or mapping) and describe the analysis process in detail.
Find the load that should be suspended : Find the load that should be suspended from the rope B which will keep the rope CD horizontally
Identify a moral problem in your own life : Identify a moral problem in your own life. This can be a problem you have lived through, one that you are confronting now, or one that you anticipate having to confront in your future.
Compare mortgage cash flow with treasury coupon bearing : Mortgage markets have developed significantly since the early 1970s through the creation of secondary market instruments in the form of mortgage pass-throughs, collateralized mortgage obligations (CMOs), and REMICs. These collectively have been gener..

Reviews

Write a Review

Financial Management Questions & Answers

  The bond was originally issued three years ago at par

A premium bond that pays $60 in interest annually matures in seven years. The bond was originally issued three years ago at par. Which one of the following statements is accurate in respect to this bond today?

  According to the residual distribution model

The Wei Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 45%. Wei has $10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual dis..

  European-style options on foreign currencies trade

European-style options on foreign currencies trade at the Philadelphia Exchange. A call option on sterling with an exercise price of 0.925 £/$ and a time to expiration of 3 months has a price of 0.0125 £/$. Is there an arbitrage opportunity? If there..

  What is the profitability index for above set of cash flow

What is the profitability index for the above set of cash flows if the relevant discount rate is 8 percent?  What is the profitability index if the discount rate is 13 percent?

  What is the company cost of equity

Shadow Corp. has no debt but can borrow at 7.5 percent. The firm’s WACC is currently 9.3 percent, and the tax rate is 35 percent. What is the company’s cost of equity? If the company converts to 60 percent debt, what will its cost of equity be? If th..

  Considering purchasing an apartment building

You are considering purchasing an apartment building for 1.2 million dollars. You expect the yearly cash inflows for the first three years to be $175,000 and year 4 and 5 will be $200000 and 250,000 respectively. At hte end of year 5 you sell the bui..

  Debt-preference shares and ordinary shares

Quest Exploration Ltd is trying to take advantage of the commodity boom by increasing its exploration activities. However, as a junior mining company it will need to raise additional capital over the coming year. Debt: Preference shares: Ordinary sha..

  Calculate effective annual interest rate

A three-year bank CD paying 7.00 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % LINK TO TEXT A three-year bank CD paying 6.80 percent compounded m..

  What is the last dividend paid

Motors Co stock has a required rate of return of 11.50% and it sells for 25$. Dividend is expected to grow at constant rate of 7%. What is the last dividend paid?

  A fast-growing firm recently paid a dividend

A fast-growing firm recently paid a dividend of $0.90 per share. The dividend is expected to increase at a 10 percent rate for the next three years. Afterwards, a more stable 5 percent growth rate can be assumed. If a 6 percent discount rate is appro..

  What would the annual yield to maturity be on the bonds

A few years ago Spider web inc issued with a 11.79 percent annual coupon rate paid semiannually. The bonds have a par value of $1,000 a current price of $702 and will mature in 23 years. What would the annual yield to maturity be on the bonds if you ..

  Calculate the equivalent annual value of these revenues

An engineer has generated an oil production forecast for a group of wells. According to this forecast, the wells produce 30,000 barrels in the first year. Starting the second year, production declines by 2,000 barrels per year for 4 years. Starting t..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd