Do you think you will be able to live comfortably with money

Assignment Help Financial Management

Reference no: EM131954776

1. You start your own company and issue 100% of the 800,000 shares of stock to yourself with a par value of $0.06 per share, and 35 years later you sell your company for $11.45 per share. How much money do you have?

a. $11.45

b. $2,113,487

c. $9,160,000

d. $14,235,982

e. None

2. If you can get an annual rate of 5% earnings on your investments, and you are the company owner from the question above. How much money will you have to live on each year if you never touch your principal?

a. $516

b. $105,674

c. $458,000

d. $29,694

e. None, because of best alternative to a negotiated agreement

3. Do you think you will be able to live comfortably with the money from the answer to the question above?

a. I could use some of that now.

b. I think I could manage.

c. No, I will need more than that

d. I plan to marry wealth.

e. All of above.

Reference no: EM131954776

Questions Cloud

Explain relationship between interest rates and bond value : Explain the relationship between interest rates and bond value. What makes interest rates change?

Calculate the principal remaining on the loan : Calculate the principal remaining on the loan at the beginning of the month and the split of that month’s payment between interest and repayment of principal.

Forecasts are objective-realistic and unbiased : Financial statements analysts must ensure that their forecasts are objective, realistic, and unbiased.

What is the minimum annual cash flow required : What is the minimum annual cash flow required to make the purchase of this asset viable?

Do you think you will be able to live comfortably with money : Do you think you will be able to live comfortably with the money from the answer to the question above?

Calculate the expected rate of return on this bond : What is the value of the coupon payment? Calculate the expected rate of return on this bond for the year.

What does the internal growth rate measure : What does the ‘Internal Growth Rate’ measure?

Forming estimate of the true value of their stock : You would be someone searching for undervalued stock by analyzing firms’ financial data and forming an estimate of the ‘true value’ of their stock.

Straightforward formula for net profit as percent : Assuming a required return of 12% : PV = ?. A straightforward formula for net profit as a percent is:

User Account

All Pages