Investment portfolio-contribute a fixed amount every year

Assignment Help Financial Management

Reference no: EM13947145

Let’s assume you want to retire with $1,000,000 in your investment portfolio. Given that your investment timeline is 35 years, the return on investment is going to average 8% and you plan to contribute a fixed amount every year for 35 years. What will be this amount?

Reference no: EM13947145

Questions Cloud

What is the value of the company common stock : A company has 2 million shares outstanding. It paid a dividend of $2 during the past year, and expects that dividends will grow at 6 percent annually in the future. Stockholders require a rate of return of 13 percent. What would you expect the price ..

Planning on issuing bonds : The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into $7,000 at maturity, 5 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yi..

Shareholders require to be compensated for financial risk : Ethier Enterprise has an unlevered beta of 1.05. Ethier is financed with 45% debt and has a levered beta of 1.45. If the risk free rate is 4.5% and the market risk premium is 7%, how much is the additional premium that Ethier's shareholders require t..

Highest real rate of return : A nominal return of 7% on your investment if you invest in US. A nominal return of 6% on you investment if you invest in Ireland. Which option will give you the highest real rate of return? (Calculate the average inflation for the last 5 years for ea..

Investment portfolio-contribute a fixed amount every year : Let’s assume you want to retire with $1,000,000 in your investment portfolio. Given that your investment timeline is 35 years, the return on investment is going to average 8% and you plan to contribute a fixed amount every year for 35 years. What wil..

What is the bond yield to maturity : Rierson owns a garment factory in Spain and sells designer clothes to US and other European countries. He is trying attract some investments from US that he can use to expand further into the US market. He decides to invest into ten year 1,000 EURO G..

What will be intrinsic price of microsoft stock ten years : Look up annual dividend of Microsoft (MSFT) on finance.yahoo.com. Assuming Microsoft dividend grows by 3% every year for 10 years and the discount rate is 6%. What is the intrinsic price of Microsoft today and is it more or less than the market price..

Targeted capital structure-marginal tax rate : Brady Inc. has a targeted capital structure of 40% debt, 10% preferred stock, and 50% common stock. The marginal tax rate is 35%. Use the data below to calculate the companys WACC. Ignore flotation costs.

What will the present value of his portfolio : Elliot makes $250,000 a year and pays 30% taxes on $150,000 and 35% on his remaining salary. His expenses are $110,000 (per year). He wants to invest a fixed amount EVERY day into an investment fund for 5 years and he hopes to get a 12% return. What ..

User Account

All Pages