Ashworth College BU340 all Assignments latest
Ashworth
College BU340 all Assignments latest
Ashworth College BU340 all
Assignments latest
ashworth college BU340 Assignment 4
latest 2016 march
<strongstyle=”font-size:
14<a=”” href=”http://www.homeworkminutes.com/”>.784px;”=””>Directions:
Be sure to save an electronic copy of your answer before submitting it to
Ashworth College for grading. Unless otherwise stated, answer in complete
sentences, and be sure to use correct English, spelling and grammar. Sources
must be cited in APA format. Your response should be four (4) double-spaced
pages; refer to the “.ashworthcollege.edu/access/content/group/33c9c4fe-4222-471d-af96-8a79ed231990/Undergraduate%20Course%20Resources/Assignment%20Format%20-%20New”>Assignment
Format” page located on the Course Home page for specific format requirements.
ASSIGNMENT 04
BU340 Financial Management I
Directions: Be sure to save an electronic copy of your answer before
submitting it to Ashworth College for grading. Unless otherwise stated, answer
in complete sentences, and be sure to use correct English, spelling, and
grammar.
Respond to the items below.
Part A:Given the following cash inflow at the end of each year,what
is the future value of this cash flow at 6%, 9%, and 15% interest rates at the
end of the seventh year?
Year 1 $15,000
Year 2 $20,000
Year 3 $30,000
Years 4 through 6 $0
Year 7 $150,000
Part B:County Ranch Insurance Company wants to offer a guaranteed
annuity in units of $500, payable at the end of each year for 25 years. The
company has a strong investment record and can consistently earn 7% on its
investments after taxes. If the company wants to make 1% on this contract, what
price should it set on it? Use 6% as the discount rate. Assume that it is an
ordinary annuity and that the price is the same as present value.
Part C:A local government is about
to run a lottery but doesnot want to be involved in the payoff if a winner
picks an annuity payoff. The government contracts with a trust to pay the
lump-sum payout to the trust and have the trust (probably a local bank) pay the
annual payments. The first winner of the lottery chooses the annuity and will
receive $150,000 a year for the next 25 years. The local government will give
the trust $2,000,000 to pay for this annuity. What investment rate must the
trust earn to break even on this arrangement?
Part D:Your dreams of becoming rich
have just come true. You have won the State of Tranquility’s Lottery. The State
offers you two payment plans for the$5,000,000 advertised jackpot. You can take
annual payments of $250,000 for the next 20 years or $2,867,480 today.
a. If your investment rate over the
next 20 years is 8%, which payoff will you choose?
b. If your investment rate over the
next 20 years is 5%, which payoff will you choose?
c. At what investment rate will the
annuity stream of $250,000 be the same as the lump sum payment of $2,867,480?
ashworth college BU340 Assignment 8
latest 2016 march
Directions: Be sure to save an electronic copy of your answer before
submitting it to Ashworth College for grading. Unless otherwise stated, answer
in complete sentences, and be sure to use correct English, spelling and
grammar. Sources must be cited in APA format. Your response should be four (4)
double-spaced pages; refer to the
“.ashworthcollege.edu/access/content/group/33c9c4fe-4222-471d-af96-8a79ed231990/Undergraduate%20Course%20Resources/Assignment%20Format%20-%20New”>Assignment
Format” page located on the Course Home page for specific format requirements.
ASSIGNMENT 08
BU340 Financial Management I
Directions: Be sure to save an electronic copy of your answer before
submitting it to Ashworth College for grading. Unless otherwise stated, answer
in complete sentences, and be sure to use correct English, spelling, and
grammar.
Respond to the items below.
Part A: Moore Company is about to issue a bond with semiannual
coupon payments, a coupon rate of 8%, and par value of $1,000. The
yield-to-maturity for this bond is 10%.
a. What is the price of the bond if
the bond matures in 5, 10, 15, or 20 years?
b. What do you notice about the
price of the bond in relationship to the maturity of the bond?
Part B: The Crescent Corporation just paid a dividend of $2 per
share and is expected to continue paying the same amount each year for the next
4 years. If you have a required rate of return of 13%, plan to hold the stock
for 4 years, and are confident that it will sell for $30 at the end of 4 years,
how much should you offer to buy it at today?
Part C: Use the information inthe following table to answer the
questions below.
|
State of Economy
|
Probability of State
|
Return on A in State
|
Return on B in State
|
Return on C in State
|
|
Boom
|
.35
|
0.040
|
0.210
|
0.300
|
|
Normal
|
.50
|
0.040
|
0.080
|
0.200
|
|
Recession
|
.15
|
0.040
|
-0.010
|
-0.260
|
a. What is the expected return of
each asset?
b.What is the variance of each
asset?
c.What is the standard deviation of
each asset?
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