What are the terminal values for investment

Assignment Help Finance Basics
Reference no: EM133057174

You invest $1,300 in stock A and $1,300 in stock B. If you earn 11 percent on stock A and 6 percent on stock B and hold each security for 13 years, what are the terminal values for each investment? Round your answers to the nearest cent. Stock A: $ Stock B: $ If you continue to hold each security and earn the same returns for 21 years, how much more will stock A generate than stock B over the entire time period? (When you invest for retirement, you should think about the impact of returns over time.) Round your answer to the nearest cen $

Reference no: EM133057174

Questions Cloud

Software upgrading and learning new software : You have been tasked by your supervisor to prepare all office computers for software upgrading and all users for learning the new software
Determine the real world expected return : Consider Zoom stock currently trading for $260 per share. Over a six-month period, the price will either increase by 20% (u = 1.2) or decrease by 10% (d = 0.9).
Calculate the IRR of the differential cash flows : Calculate the IRR of the differential cash flows between the two projects at which the company will be indifferent (Show all necessary calculations.)
Illustrate the public key infrastructure : (a) If Bob intends to protect confidentiality of his messages to Charlie using hybrid encryption, he needs to obtain Charlie's public key first. Illustrate the
What are the terminal values for investment : You invest $1,300 in stock A and $1,300 in stock B. If you earn 11 percent on stock A and 6 percent on stock B and hold each security for 13 years, what are the
Make the journal entry the partnership makes : On January 20th Cream Cheese contributed $500000 to become a one-third partner in the partnership. Make the journal entry the partnership makes
Find yield to maturity on a 14-year bond : Vitality Vancouver Inc. (VVI) has recently raised debt capital through long-term financing. The bond indenture includes issuing 8% coupon bonds on the market
What does term authentication mean : What does the term authentication mean? What is multi-factor authentication? What does the term physical security mean?
Advice on superannuation planning : Fred is 38 years of age and has sought your advice on superannuation planning.

Reviews

Write a Review

Finance Basics Questions & Answers

  Relationships of nationalism and imperialism

What were the relationships of nationalism and imperialism in the last half of the 19th century and the causes of WWI? How did they change and affect the world?

  How team dynamics can affect the productivity of team

Find how you can apply this information in your own personal?Explain how team dynamics can affect the productivity and effectiveness of a team

  How would you perform a simple valuation analysis of a

how would you perform a simple valuation analysis of a certain stock? a multi stage dividend discount model calculation

  Account the costs of external? financing

The issue costs for the debt will be 3.4% of face value. Taking into account the costs of external? financing, what is the NPV of the? project?

  Represents the notion of empirical probability

1. As you follow your favorite NBA basketball team's statistics, you notice the point guard is shooting 35% from behind the three-point line (for his overall career up this point). Assuming he is given the ball twice near the end of a game and sho..

  How does a soaring dollar affect its profitability

Black & Decker Manufacturing Co. of Towson, Maryland, has roughly 45% of its assets and 40% of its sales overseas. How does a soaring dollar affect its profitability, both at home and abroad?

  Describe the procedures that american express has put

Describe the procedures that American Express has put in place to ensure ethical behavior and identify the processes that the company uses to comply with the SEC regulations.

  What is the role of liquidity in bank management

What is the role of liquidity in Bank management? Why Is it an important matter? One source to backup your respond.

  Compute internal rate of return of norwegian project

Bartley Corp., a U.S. company, is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $6 million.

  Dhaka jute co is experiencing rapid growth dividends are

dhaka jute co. is experiencing rapid growth. dividends are expected to grow at 30percent per year during the next three

  What is the present value of the proposed service

Question: What is the present value of the proposed service of the machine?

  What is the mean return of the market portfolio

How does your answer to part a change if the debt is risky, has returns with a mean of 7 percent, has a standard deviation of 10 percent, a beta of .2, and has a correlation of .3 with the return of the common stock of Alumina?

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