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3 years ago

9

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future finan

cial activities is a

1 answer:

Bezzdna [24]3 years ago

4 0

Answer:

financial plan.

Explanation:

You might be interested in

You were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your

pickupchik [31]

Answer:

The answer is 27,408.71

Explanation:

Solution

Recall that:

You were left with a trust fund of =$100,00

Interest rate = 6.5%

Money with drawled = 4 installments

Now,

The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.

Now,

100, 00 = X (1 - (1.065)^-4/.065/1.065

We now solve for X

Thus

X =7,408.71

By applying or using a financial calculator

We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"

So,

N = 4

I/Y = 6.5

PV = -100,000

FV = 0

CPT PMT

The payments are known to to be 27,408.71

Note : Kindly find an attached copy of the Financial calculator below

3 0

3 years ago

Read 2 more answers

In what kind of nation are members of a society most likely to have good educational opportunities?

vladimir1956 [14]

Answer:

a developed nation for states

8 0

2 years ago

Suppose a food pantry received a donation and allowed volunteers to vote on how the funds were to be spent. Three options were p

Tems11 [23]

Answer:

improvements to the building,

Explanation:

Opportunity cost is the foregone advantage of not setting certain options in decision making. When a particular option is preferred over others, then benefit from the other options not selected are forfeited. The forfeited benefits represent the opportunity cost.

The value of opportunity cost is equated to the value of the next best alternative. Where there were more than two alternatives available, the next best alternative from the chosen option becomes the opportunity cost. In this case, improvement to the building was voted the second preferred option; hence it becomes the opportunity cost.

8 0

3 years ago

Rollins Corporation is estimating its WACC. Its target capital structure is 20% debt, 20% preferred stock, and 60% common equity

katrin2010 [14]

Answer:

A. What is the company's cost of preferred equity?

8.42%

B. What is the company's cost of common equity?

11.45%

C. What is the company's WACC?

9.31%

Explanation:

20% debt ⇒ after tax cost of debt 3.76%

20% preferred stock ⇒ 8.42%

60% common equity ⇒ 11.45%

in order to determine the after tax cost of debt we must first determine the yield to maturity of debt:

approximate YTM = {37.5 +[(1,000 - 1,150.78)/40]} / [(1,000 + 1,150.78)/2] = 33.7305 / 1,075.39 = 3.3166% x 2 = 6.2732%

after tax cost of debt = 6.2732% x 0.6 = 3.76%

cost of preferred stocks = 8 / (100 x 0.95) = 8 / 95 = 8.42%

cost of equity (Re) = 2.45% + (1.8 x 5%) = 2.45% + 9% = 11.45%

WACC = (60% x 11.45%) + (20% x 8.42%) + (20% x 3.76%) = 6.87% + 1.684% + 0.752% = 9.306% = 9.31%

3 0

4 years ago

A convenience store has made up 20 grab bag gifts and is offering them for $3 a bag. 9 bags contain merchandise worth 50 cents.

wariber [46]

Answer:

Explanation:

Probability of selecting a bag contain merchandise worth 50 cents is 9/20 = 0.45

Probability of selecting a bag contain merchandise worth $2.25 is 8/20 = 0.4

Probability of selecting a bag contain merchandise worth $5 is 3/20 = 0.15

Expected gain/loss = 0.45*9 + 0.4*8 + 0.15*3 - 3 = 4.05+3.2+0.45 -3 = 4.7

Hence there is expected gain of 4.7

3 0

3 years ago

Read 2 more answers