What is suzannes dollar-weighted rate of return

Assignment Help Financial Management
Reference no: EM132020120

Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $8400 to Kerry.

On April 1, 2014, Kerry repaid $2800 to Suzanne.

On July 1, 2014, Kerry repaid $3360 to Suzanne, and Suzanne immediately place half of this payment into an account at Harlow Savings and Loan which earns at effective monthly compound interest rate of 0.8%

Finally, on January 1, 2015, Kerry gave Suzanne $2800 to completely repay the loan. At the same time, Suzanne closed her account at Harlow Savings and Loan and withdrew the money in the account.

What is Suzanne's dollar-weighted rate of return in this financial agreement, assuming simple interest for the rate of return? (Round your answer to four places after the decimal)

Reference no: EM132020120

Questions Cloud

Calculate average cost for each unit : Sweet Acacia Industries began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
Estimate the current share price : If the required return is 11 percent, and the company just paid a dividend of $2.15, what is the current share price?
What is this firms cost of equity : Sweet Treats common stock is currently priced at $19.74 a share. The company just paid $1.15 per share as its annual dividend.
What is the sensitivity of npv to annual sales : If annual sales is changed to $1,800,000, what is the project's NPV. assuming every else the same? What is the sensitivity of NPV to annual sales?
What is suzannes dollar-weighted rate of return : What is Suzanne's dollar-weighted rate of return in this financial agreement, assuming simple interest for the rate of return?
Calculate industries adjusted present value : Swamp & Sand Industries has the following data. At a discount rate of 12%, calculate its Adjusted Present Value (APV) for 20X1 through 20X3.
What are the cash flows associated with the machine : Sussman Industries purchased a drilling machine for $100,000 and paid cash. Sussman expects to use the machine for ten years after which it will have no value.
What is the markets estimate of the 3 year treasury rate : Assuming that the pure expectations theory is correct, what is the market's estimate of the 3 year treasury rate 2 years from now?
How much of the money you would keep in cash : Explain precisely how much of the money you would keep in cash and how much you would invest in the stock to be perfectly hedged in one month.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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