Explain why growth mutual funds are worse investments

Assignment Help Corporate Finance
Reference no: EM13992899

Explain why growth mutual funds are worse investments than taking out a second mortgage on a home and investing in the market index.

Reference no: EM13992899

Questions Cloud

The inventory control techniques : Why is it important for the financial manager to understand the inventory control techniques used by production/operations managers? How does controlling inventory impact a firm's profitability?
Why is it important for the financial manager : Why is it important for the financial manager to understand the inventory control techniques used by production/operations managers? How does controlling inventory impact a firm's profitability?
Differences between top-down and bottom-up : Describe the differences between top-down and bottom-up sales forecasting methods. Describe advantages and disadvantages of each. Do you think one approach is likely to be more accurate than the other?
Determine the total income or loss on discontinued operation : The company's tax rate is 30%. 1. $15,000, 2. $10,500, 3. $63,000, 4. $17,500.
Explain why growth mutual funds are worse investments : Explain why growth mutual funds are worse investments than taking out a second mortgage on a home and investing in the market index.
River co. has paid a dividend $2 p : River Co. has paid a dividend $2 per share out of earnings of $4 per share. If the book value per share is $25 and is currently selling for $40 per share, calculate the required rate of return on the stock.
Deluxe company expects to pay a dividend of $2 : Deluxe Company expects to pay a dividend of $2 per share at the end of year-1, $3 pers share at the end of year-2 and then be sold for $32 per share. If the required rate on the stock is 15%, what is the current value of the stock?
Briefly explain the major types of exchanges : Briefly explain the major types of exchanges prevalent in the USA.
What is the current value on stock : World-Tour Co. has just now paid a dividend of $2.83 per share (D0); the dividends are expected to grow at aconstant rate of 6% per year forever. If the required rate of return on the stock is 16%, what is the current value on stock, after paying the..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Find expected return of mm stock

Wolfrum technology has no debt. Its assets wiil be worth $450 million in one year if the economy is strong, but only $200 million in one year if the economy is weak.

  What is the projects apv in the cases

Calculate the weighted-average cost of capital (WACC) for Federated Junkyards of America and what is the project's APV in the cases

  You are considering two investments from the bonds listed

you are considering two investments from the bonds listed in question 8.2. show that the cash flows from the following

  Calculate expected claim cost per policy

An insurer trade a very large amount of policies to people with the following loss distribution: $100,000 with probability 0.005;

  Determine stock valuation of adjo in terms of present value

Throughout the entirety of these periods, investors anticipated a 4.50% required rate of return. Given such data, determine the stock valuation of ADJO in terms of present value.

  1undertake a critical analysis of the agency problemsin the

1.undertake a critical analysis of the agency problemsin the past or the main factors that could cause agency problem

  What is the yield on 3-month treasury bills

Calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has a 35 percent marginal tax rate.

  Calculate the expected npv & coefficient of variation

Trail Guides, Corporation, is currently evaluating 2 mutually exclusive investment. After doing a scenario analysis & applying probabilities to every scenario;

  In free markets we tend to think of government regulation

in free markets we tend to think of government regulation as bad markets can regulate themselves and government

  What is the percentage change in the price

Consider a 6-year coupon bond with 4% annual coupons and a $1,000 face value. How much will the price of the bond change if its yield to maturity decreases from 7% to 6%? What is the percentage change in the price?

  Evaluate whether buc should sell plantation now for millions

BUC would have used a discount rate of 23% to discount the cash flows from its Honduran operations if the threat of expropriation were not present. Evaluate whether BUC should sell the plantation now for $160 million.

  Draw the present value of the assets

Determine the set of all interest rates {r} such that asset A is more valuable than asset B and draw the present value of the assets as a function of the interest rate.

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