What rate of return must it earn in the second year

Assignment Help Financial Management

Reference no: EM131965890

1. Gordon has heard that fusion powered SUV's will be available in 10 years at a price of 125000 dollars. How much should he invest now, at 9.6 percent interest compounded annually, to have the amount required to purchase the SUV in 10 years.

2. A hedge fund charges an incentive fee of 10% of any investment returns above the T-bill rate, which currently is 3.5%. In the first year, the fund suffers a loss of 9.5%. What rate of return must it earn in the second year to be eligible for an incentive fee? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131965890

Questions Cloud

What is the breakeven point for the business : What is the breakeven point for the business over 3 months (12 weeks)?

Planning with your colleagues at great alaska adventures : Discussing a fishing expedition you are planning with your colleagues at Great Alaska Adventures (GAA).

How much will the effective annual rate of return : If you buy the security, by how much will the effective annual rate of return on your investment change?

How much money will be in the account : You have decided to place $254 in equal deposits every month at the beginning of the month into a savings account earning 5.79 percent per year.

What rate of return must it earn in the second year : What rate of return must it earn in the second year to be eligible for an incentive fee?

Calculate the stock price today : A stock will make its first dividend payment in 6 years. Calculate the stock price today.

Make equal annual deposits into the account : You’re prepared to make equal annual deposits into the account at the end of each year. what amount must you deposit each year?

Economic compensation lowering the fixed expenditure : the organization to have variable costs such that expenses are directly related to economic compensation lowering the fixed expenditure?

Calculate the value of the bond to you : Calculate the value of the bond to you, given your required rate of return.

User Account

All Pages