Planning your retirement, You are planning your retirement

Planning your retirement

Assignment Help Financial Management

Reference no: EM131020019

You are planning your retirement in 10 years. You currently have $169,000 in a bond account and $609,000 in a stock account. You plan to add $7,100 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.75 percent and the bond account will earn a return of 7.25 percent. When you retire, you plan to withdraw an equal amount for each of the next 21 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.5 percent?

Reference no: EM131020019

Questions Cloud

What is the value at year-perpetual stream : Given an interest rate of 6.7 percent per year, what is the value at Year 9 of a perpetual stream of $3,450 payments that begin at Year 17?

How many payments will you have made when your account : You’re prepared to make monthly payments of $195, beginning at the end of this month, into an account that pays 8 percent interest compounded monthly. Required: How many payments will you have made when your account balance reaches $54,000?

Used the straight-line depreciation method : Benson Company purchased equipment for $80,000 in 2012. The machinery originally had an estimated life of 10 years and a salvage value of $5,000. Benson used the straight-line depreciation method. In 2016, the estimated life was changed to 8 years. R..

What is investor required rate of return according to CAPM : An investor is interested in acquiring an appliance marker with an all equity transaction. The 10 years Treasury Note is at 3.12% The 3 month T-bills is currently at 0.4% The industry is 150% riskier than the general market while S&P index has been r..

Planning your retirement : You are planning your retirement in 10 years. You currently have $169,000 in a bond account and $609,000 in a stock account. You plan to add $7,100 per year at the end of each of the next 10 years to your bond account. You are planning your retiremen..

What was the growth rate in earnings per share : 3 years ago, Weed Go Inc. earned $0.54 per share. Its earnings this year were $2.83. What was the growth rate in earnings per share (EPS) over the 3-year period? State your answer as a percentage to two decimal places (e.g. 16.38%). The % sign is not..

The timing assumptions for your retirement planning : The following are the timing assumptions for your retirement planning: you will save with annual payments into a retirement savings account. The following are the investment and consumption assumptions for your retirement planning: your investments w..

Present values of its expected cash flows : You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?

What is the firms interest expense : Byron Books, Inc. recently reported $9,545,882 in net income. The firm's EBIT was $22,866,672, and its tax rate was 35%. What is the firm's interest expense?

User Account

All Pages