Week 1 Textbook Problems FIN/402 Week 1 Case Problem 1.2, A-E (page 35) 7 years= $259,140 / 10 years= $302,122.50 Age 62 income = $20,470.81 / Age 65 income = $27,174.17 Age 62 = $46,778 / Age 65 = $47,430.17 At the current rate she will need meet her retirement goals by the age of …
Textbook Case Problems Week 4 FIN/402 Textbook Case Problems 10.1 Describe the type of bond investment program you think the Shuman family should follow. In answering this question, give appropriate consideration to both return and risk factors. I think it would be best for the Shuman family to follow a long-term investment program. It would …
Textbook Case Problems Week 1 FIN/402 1.2 Assume that Carolyn places currently available funds in the savings account. Determine the amount of money Carolyn will have available at retirement once she sells her house if she retires at (1) age 62 and (2) age 65. Retires at 62 (7-year investment): $97,500*(1.06)^7+selling price of house = …
Week 5 Problems FIN/402 Case Problem 14.1 A-C (page 588) The first alternative is for Hector to invest in RPP shares directly and hold for the 6 months. Hector could also invest in RPP with purchase a six-month call options with a $50 strike price and quoted $8 premium. Lastly He has the choice of …
Week 4 Problems FIN/402 Case Problem 10.1 A-E (page 422) A. Since the Shuman family should follow open a long term, diversified portfolio with moderate risk with a passive approach. Since the family is not dependent on the money, and have chosen to use some of the inheritance upfront, they can benefit from some of …
Week 3 Problems FIN/402 Case Problem 6.1 A-C (page 252) Savings accounts are a safe way to keep money and earn interest but if she is willing to take on more risk she is better off investing in stocks. By holding diversified common stock (or mutual fund), she can have to opportunity to earn higher …
Week 2 Textbook Problems FIN/402 Case Problem 4.1 A-F (page 154) a. Interest 4% Interest 4% Investment A Investment B Year Cash Flow PV Year Cash Flow PV 0 ($1,050.00) ($1,050.00) 0 ($1,050.00) ($1,050.00) 1 $50.00 $48.08 1 $0.00 $0.00 2 $50.00 $46.23 …
Learning Team: Finalizing Stock Research FIN/402 Who We Are and Our Goal The members of our team consists of:Elmor Morris BaldeoJoel Cisco-GardunioSamantha JacobsenAaron JAlva Carl MayWilliam NiemannAliza RondezElizabeth Stout Our goal for our portfolio:Invest in reasonable stocks that do not have that much risk but still monitor each company to stay updated with the activity …