What would the return on her investment be

Assignment Help Financial Management
Reference no: EM131563087

Ann was offered an annuity of $20,000 a year for the rest of her life. She was 55 at the time and her life expectancy was 84. The investment would cost her $180,000. What would the return on her investment be?

Reference no: EM131563087

Questions Cloud

Prepare the necessary adjusting journal entries : Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2017
Thesis statement for selected research paper topic : Chosen a topic and created a working thesis statement for research paper topic
Describe the meaning of the legal doctrine : Describe the meaning of the legal doctrine, Respondeat Superior.Introduction that includes the thesis statement.
What would be cost per equivalent unit for conversion costs : Diston Company uses the weighted-average method in its process costing system. What would be the cost per equivalent unit for conversion costs for the month
What would the return on her investment be : The investment would cost her $180,000. What would the return on her investment be?
Evaluate the pressure in a certain fire hose : The change p (in lb/in2.) in pressure in a certain fire hose, as a function of time (in min), is found to be p = 2.3t2 - 9.2t.
Recently hired you as consultant to handle project valuation : Dave Inc. recently hired you as a consultant to handle project valuation. What is Dave’s current stock price per share?
What should he bid : He required an 7 percent return to make that investment. What should he bid?
What amount should be reported as a current liability : The Stellar, Inc. sold 9,830 season tickets at $1,810 each. What amount should be reported as a current liability at December 31, 2017

Reviews

Write a Review

Financial Management Questions & Answers

  Stock fund and government and corporate bond fund

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.6%. The correlation between th..

  Other assets and current liabilities remain constant

Airspot Motors, Inc. has $2,382,800 in current assets and $851,000 in current liabilities. assuming all other assets and current liabilities remain constant.

  Stephen plans to purchase a car

Stephen plans to purchase a car 7 years from now. The car will cost $67,989 at that time. Assume that Stephen can earn 7.37 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

  What is estimated required rate of return on stock

What stock price is expected 1 year from now? What is the estimated required rate of return on Woidtke’s stock?

  A call provision grants the bond issuer the

A call provision grants the bond issuer the:

  How many bonds will company have to issue in order to raise

How many bonds will the company have to issue in order to raise the necessary $1 million?

  Ford motor an efficient portfolio of these two stocks

Suppose Ford Motor stock has an expected return of 18 % and a volatility of 38 % ?, and Molson Coors Brewing has an expected return of 10 % and a volatility of 31 % . If the two stocks are uncorrelated, A. What is the expected return and volatility o..

  Net present value

Net Present Value. Your organization must decide on whether to accept a project that has been requested by the research and development department. The initial investment is $350,000. You have projected that the cash in-flows from the project will be..

  What is beta of your shares after the buyback is completed

You own some shares of Microsoft worth $1,000. Beta of Microsoft is 2. Microsoft currently has no debt. Microsoft decides to issue debt and buy back some of its stock in open market. What is the beta of your shares after the buyback is completed.

  What is your estimate of callahan cost of common equity

Using the DCF approach, what is its cost of common equity? what is your estimate of Callahan's cost of common equity?

  Interpreting sensitivity reports-optimum value

Interpreting Sensitivity Reports. If profit margin for Y is decreased to 39, what would he te change in optimum value? The machining availability has dropped from 7 to 6.5. What impact will Thai have on the optimal solution and the optimal value?

  Determine the present value of each year payment

Determine the present value of each year's payment for each proposal, as well as the total present value of each proposal.

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