What average return must the fund

Assignment Help Financial Management
Reference no: EM131972846

Your lifetime ?nancial goal is to have $1,250,000 invested in a mutual fund when you retire in 40 years. You plan to invest $1,000 in a mutual fund now, and then invest an additional $200 per quarter for 40 years. What average return must the fund provide to meet your investment goal?

Reference no: EM131972846

Questions Cloud

What is political risk : Explain why a nominal increase in an exchange rate that leaves the point may still have an impact on the profit margins of a MNC. What is political risk?
The classic capm and the tax-adjusted capm : calculate its weighted average cost of capital using both the classic CAPM and the tax-adjusted CAPM.
Prepare imaginary budget according to budgeting method : Explain the purpose and nature of the budgeting process. Select appropriate budgeting methods for the organization and its needs.
What is the irr of the cisco bid now : Including its savings, what are Facebook's net cash flow under the lease contract? What is the IRR of the Cisco bid now?
What average return must the fund : What average return must the fund provide to meet your investment goal?
Calculate the operating expenses : Calculate the cap rate. Calculate the Gross Income. Calculate the Operating Expenses.
Explain should exporters incorporated hedge the exports : Exporters Incorporated is a multinational firm that exports to countries around the world. One country the firm exports to is the Great Britain.
How much you have to pay to buy the bond : Express your age in years only (Forget about month and day, for example if you are 22 years and 5 months and 15 days, then use 22 years.
Evaluating the company weighted average cost of capital : What is the company's weighted average cost of capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places).

Reviews

Write a Review

Financial Management Questions & Answers

  Correct with regard to bonds with warrants

Which statement is correct with regard to bonds with warrants. Which of the following statements is correct regarding preferred stock.

  What is the firm cost of equity

The market rate of return is 11.8 percent and the risk-free rate is 3.45 percent. Galaxy Co. has 36 percent more systematic risk than the overall market and has a dividend growth rate of 3.5 percent. The firm's stock is currently selling for $42 a sh..

  Discuss the exxon-mobil merger valuation analysis

Synergies can result from cost reductions or revenue increases. Discuss the Exxon-Mobil Merger valuation analysis above?

  The expected returns of each of the four individual assets

What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 3.0?% ?

  Comment on equity of income versus a consumption tax

Suppose two workers earn labor incomes of $20,000 per year in each of three years. One worker saves 20 percent of her labor earnings in each of the first two periods, and spends all her savings and accumulated interest in the final period. Calculate ..

  Find the net income and current assets

Find the Net Income and Current Assets

  Swap fixed-rate loans for floating-rate loans

Why might an individual or organization be willing to swap fixed-rate loans for floating-rate loans?

  List the various disadvantages that may discourage

As an overall review of this chapter, identify possible reasons for growth in international business. Then, list the various disadvantages that may discourage international business.

  Estimate of highgrowth cost of equity capital

HighGrowth Company has a stock price of $20.The firm will pay a dividend next year of $1.17, and its dividend is expected to grow at a rate of 3.7% per year thereafter. What is your estimate of HighGrowth's cost of equity capital?

  Requires an initial fixed asset investment

The Market Place is considering a new four-year expansion project that requires an initial fixed asset investment of $2.8 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will have a ..

  Calculate the price of bonds at each of years to maturity

calculate the price of the bonds at each of the following years to maturity.

  Decides to issue debt in order to finance the purchase

Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past ..

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