What is the required market rate of return

Assignment Help Financial Management
Reference no: EM131989768

1. Your account pays interest at 12 percent p.a.. You deposit $ 12,382 in it today. You must have exactly $ 86,639 in the account at the end of two years. What should you do at the end of the first year (that is, what dollar amount must you deposit) to ensure this?

2. You deposit $ 9,675 in your account today. You make another deposit at t = 1 of $ 7,914 . How much will there be in your account at the end of year 1 if the interest rate is 7.8 percent p.a.?

3. If the risk-free rate of return was 4.5% and the market risk premium is 5%, what is the required market rate of return?

Reference no: EM131989768

Questions Cloud

Cost savings for this investment are due to what factor : Cost savings for this investment are due to what factor?
What is the size of your monthly payment : You decide you want to pay the loan off in equal monthly payments over 5 years. What is the size of your monthly payment?
About what is the principal balance on the loan : After 12 years, Bill wants to pay off his house; about what is the principal balance on the loan?
Correlation coefficient between the stock and market index : Using these whole percentages, calculate the correlation coefficient between the stock and the market index.
What is the required market rate of return : If the risk-free rate of return was 4.5% and the market risk premium is 5%, what is the required market rate of return?
What are the after-tax proceeds from the sale : If the machine is sold at the end of the fourth year for $25,000, what are the after-tax proceeds from the sale, assuming a 40% tax rate?
Market believe will be stock price at end of three years : Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years?
Calculate the price of sixth month european at-the-money put : Calculate the 6 month forward price of the stock. Calculate the price of a 6 month European at-the-money put.
Use the payback decision to evaluate project : Use the payback decision to evaluate this project; should it be accepted or rejected? What is the payback period?

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