#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

Finding depreciation and amoritizaton, EBITDA is 7.5 million, Net income is...

EBITDA is 7.5 million, Net income is 1.8, 2.0 million is interest expense, corporate tax is 40%. What is the Depreciation and amortization?.

Identify the key issues evident at global mining, The atmosphere in the roo...

The atmosphere in the room was tense. Ted Kimoski, Financial Director for Global Mining, had justfinished his presentation. John Campbell, Managing Director, sat quietly making not

Cold shunt and misrun casting, Q. Discuss briefly the causes and remedies o...

Q. Discuss briefly the causes and remedies of misrun and cold shunts casting    Cold Shunt and Misrun : When the metal is unable to fill the     mould cavity completely and t

Electro-mechanical fuel control, Electro-mechanical fuel control: The s...

Electro-mechanical fuel control: The start fuel valve and ignition are energised as soon as rotation (3%) is sensed by an Electronic Sequence Unit (ESU). At 14% and with risin

Solid state devices, Derive an expression for electron concentration in con...

Derive an expression for electron concentration in conduction band and hole concentration in valance band

Lean enterprise, a department manufactures a produt using a kanban system. ...

a department manufactures a produt using a kanban system. data is demand/hr= 30, container size= 5, unit processing time= 1.25 min. find the minimum number of kanban assuming reple

QMETER, Explain how a Q-meter can be used to measure resistance inductance ...

Explain how a Q-meter can be used to measure resistance inductance and capacitance??

Homework, name the functions of the CIPM

name the functions of the CIPM

LTE, WHATIS LTE CODING TECHNIQUES USE FOR MOBILE SYSTEM

WHATIS LTE CODING TECHNIQUES USE FOR MOBILE SYSTEM

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