#Corporate Finance Homework, Other Engineering

Assignment Help:
#As an investment advisor you have been approached by a client called Ramesh, who wants some help in investment related matters.

Ramesh is currently 45 years old and has Rs 6, 00,000 in the bank. He plans to work for 15 more years and retire at the age of 60. Ramesh''s present salary is Rs 4, 00,000 per year. He expects his salary to increase at the rate of 12% per year until his retirement.

Ramesh has decided to invest his bank balance and future savings in a portfolio in which stocks and bonds will be equally weighted. Assume that these proportions will be maintained by him throughout. He also believes that bonds will provide a return of 7% and stocks a return of 13%.

Once Ramesh retires at the age of 60 he would like to withdraw Rs 5,00,000 per year from his investments for the following 15 years as he expects to live up to the age of 75 years. He also wants to give Rs 10, 00,000 to his children at the end of his life. How much money would he need 15 years from now?

How much should Ramesh save each year for the next 15 years to be able to meet his investment objectives spelt out? Assume that the savings will occur at the end of each year.

Suppose Ramesh wants to donate Rs 2, 00,000 each year in the last 3 years of his life to a charitable cause. Each donation would be made at the beginning of the year. How much money would he need when he reaches the age of 60 to meet this specific need? Ignore the tax factor to answer these questions.


Related Discussions:- #Corporate Finance Homework

Polymorphism, Q.  Define the polymorphism. Ans. POLYMORPHISM: It is d...

Q.  Define the polymorphism. Ans. POLYMORPHISM: It is defined as the change in atomic structure which occurs at a definite transformation temperature. The cooling diagram of

Fire risk assessment - fire protection engineering, What is a fire risk ass...

What is a fire risk assessment? Fire Risk Assessment (FRA) can mean different things to different people.  Here we will look at the understanding in the UK and the understandin

Fibre optics communications, explain the fibre optic communication system w...

explain the fibre optic communication system with block diagram

Chemical engineering, A steel cylinder 10 cm in diameter and 10 cm long is ...

A steel cylinder 10 cm in diameter and 10 cm long is initially at 300 0C. it is immersed in an oil bath which is maintained at 40 0C, with h= 280 W/m2. 0C. Find the temperature at

Kalman filtering , Kalman Filtering  All of the measurements generat...

Kalman Filtering  All of the measurements generated by the seeker and the navigation system/rate gyros are noisy, and therefore need to be filtered.  The Kalman filter, a

Duty cycle, how to modulate duty cycles

how to modulate duty cycles

Calculate pi for infinite series, Write a program to calculate from the i...

Write a program to calculate from the infinite series: Print a table showing the value of approximated by one term, two terms, three terms, four terms, and so on from th

Write Your Message!

Captcha
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