Compute future values

Assignment Help Financial Management
Reference no: EM13878757

The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with 12b-1 fees of 6.0% annually but no load. If you plan to sell the fund after 7 years, are Class A or Class B shares the better choice? Assume a 15% annual return net of expenses. (Compute future values)

Reference no: EM13878757

Questions Cloud

Describe a job or careers in marketing that interest you : Describe a job or careers in marketing that interest you. (Market Research). Describe two jobs in your field that interest you. Describe how in that role you may also act as a part-time marketer. (Research Analyst, Statistician)
How much should an investor pay for each bond : A corporation has promised to pay $1,000 20 years from today for each bond sold now. No interest will be paid on the bonds during the 20 years, and the bonds are discounted at an interest rate of 7%, compounded semiannually. Approximately how much sh..
What is the current stock price if we anticipate dividends : Caldwell Inc. just paid a dividend of $.73. Its stock has a dividend growth rate of 5.62% and a required return of 10.21%. What is the current stock price if we anticipate dividends stopping in 20 years?
Calculate the total cost and direct material variances : Calculate the following variances and associated subvariances for April: total cost; Direct material; Direct labour; Variable overhead; Fixed overhead.
Compute future values : The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with 12b-1 fees of 6.0% annually but no load. If you plan to sell the fund after 7 years, are Class A or Class B shares the better choice? Assume a 15% annual retur..
What is the current price of the common stock : Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects sales and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the grow..
Dollar lottery would you take the lump sum amount : If you won a 50 million dollar lottery would you take the lump sum amount or twenty five year annuity? Explain why and calculations. Estimated taxes are 30% and the interest rate in 10%. Include reasoning behind the answer.
Identify at least four risks that could jeopardize wedding : Identify at least four risks that could jeopardize the wedding and create a risk assessment matrix including a response plan for each of the risks.
Define the importance of time value of money : Define the importance of time value of money including compounding (future value), discounting (present value) and annuities. Why do organization leaders need to understand these concepts?

Reviews

Write a Review

Financial Management Questions & Answers

  What rate of growth must be expected for spencer

Spencer Supplies stock is currently selling for $60 per share. The firm is expected to earn $5.10 per share this year and to pay a year-end dividend of $3.70.

  Predetermined amount of percentage of salary

which of the following is used to only allow you to insure an item when you yourself would suffer a loss should the item be damaged?  In which qualified plan, a predetermined amount of percentage of salary is paid out upon retirement:

  Using the dividend discount model

Yippie is a recent startup and is currently not paying any dividends. The earnings in 2006 are expected to be $4 a share and analysts predict that Yippie’s earnings will grow at an annual rate of 30% for the next three years (until 2009). What is the..

  What is the annual divendend on txs preferred stock

Preferred Stock valuation: TXS Manufacturing has an outstanding preferred stock issue with a par value of $61 per share. The preferred shares pay divendends annually at a rate of 11%. What is the annual divendend on TXS preferred stock?

  Benefit by using activity based costing

Evaluate and discuss whether Boeing could benefit by using Activity Based Costing (ABC). The discussion should include what factor(s) influenced your decision, the ramifications of implementing ABC in the international business environment, and how y..

  What is the fair price today for each share of common stock

The Xerox Company paid a $3.00 dividend per share on its common stock this past year. This dividend represented a 40% payout ratio. Dividends are expected to grow at a 6% annual compound growth rate while earnings are expected to grow at a 10% growth..

  Evaluate your potential gains-losses at option expiration

Suppose you write 30 put option contracts with a $40 strike. The premium is $2.40. Evaluate your potential gains and losses at option expiration for stock prices of $30, $40, and $50.

  The economic order quantity

The economic order quantity- determines the reorder point. provides the lowest inventory costs.

  What was the annual effective rate

You borrowed $45 from a friend and after ten months repaid $50.. What monthly interest rate did you pay?  (xx.xx%) What nominal annual interest rate did you pay?  (xx.xx%) What was the annual effective rate?

  1 if a firm raises capital by selling new bonds it would be

1. if a firm raises capital by selling new bonds it would be called the issuing firm and the coupon rate is usually set

  What is the firms after-tax cost of debt

5 years ago, Barton Industries issued 25-year no callable, semi annual bonds with a $1,900 face value and a 10% coupon, semi annual payment ($95 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, wh..

  Evaluation of performance of business

The evaluation of performance of business units in either Tesco or Carrefour using financial and non-financial measures.

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