What spending rate can the endowment fund accommodate

Assignment Help Financial Accounting
Reference no: EM132983223

Problem 1: A university's endowment fund specifies a return objective of CPI plus 3.5% p.a. what spending rate (to two decimal places) can the endowment fund accommodate if long-term inflation is 1.6% p.a. and the management expenses of the fund are 0.1 % p.a.

Reference no: EM132983223

Questions Cloud

Can debit sales for dollar fifteen thousand : Can we debit Sales for $15,000, credit Cost of Sales for $15,000 on 30 June 2021? One of the liabilities of Valley Ltd was $50,000 for dividend payable.
Calculate the new net profit : Neelopa Enterprise's financial statement for the year ended 31 December 2020 has showed a net profit of RM100, 500. Calculate the new net profit
Compute the amount the company can borrow : The accounts receivable at the end of the period is $7.5 million with $500,000 over 90 days old. Compute the amount the company can borrow
Implement at least two locked doors to your game : Describe your game, including the back story and the setting of the game - Implement at least two locked doors to your game.
What spending rate can the endowment fund accommodate : What spending rate (to two decimal places) can the endowment fund accommodate if long-term inflation is 1.6% p.a. and the management expenses
What is the utility of the investor of a portfolio : What is the utility of the investor (two decimal places) of a portfolio that has an expected return of 5.1% p.a. and a standard deviation of return of 10.4 p.a.
What is its price : A bond that matures in 8 years has a par value of $1,000 and an annual coupon payment of $70; its market interest rate is 9%. What is its price
Calculate accumulated value at time that claim is paid : Calculate the accumulated value (to the nearest whole number), at the time that the claim is paid, of all of the premium payments of $5,000.
Cash inflow became how much in amount : Cash inflow became how much in amount? ABC uses the payback method. Recently, ABC had a payback of 36 months on a new gas

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the amount of the lease payments

Determine the amount of the lease payments. Provide the entries required on the lessor's books to record the lease and the first payment. Calculate the total income to be recognized by ABC Company in the first year of the lease.

  Find what is project annual after-tax incremental earnings

What is the project's annual after-tax incremental earnings? It will generate incremental revenue of $1000 per year and incremental costs of $100.

  Prepare journal entries for each of the foregoing events

Prepare journal entries for each of the foregoing events that affected the Local Improvement District Fund

  How much will he have in his RRSP at the end

How much will he have in his RRSP at the end of the 30 years? Assume that the RRSP earns 12% compounded semiannually

  What are the projects npv and irr

A company just paid $10 million for a feasibility study. If the company goes ahead with the project, it must immediately spend another $100 million now, and then spend $20 million in one year. In two years it will receive $80 million, and in three ye..

  Write amount that would be recognised by lessor ltd

Write amount that would be recognised by Lessor Ltd as the Lease Receivable at the commencement of the lease in accordance with the requirements of AASB 16.

  What the amount of contract revenue to appear in the income

What the amount of Contract Revenue, Cost of construction, Gross Profit to appear in the income statement for the period ended December 31, 2020 is

  Calculate the cost of ending inventory using period LIFO

During the month of March purchased an additional 6,000 units at $14.50 each. Calculate the cost of ending inventory using period LIFO

  Which statements about treasury stock is true

Which statements about treasury stock is true? Excess of sales price over cost should be credited to retained earnings./ Losses on treasury stock transaction

  How much of the gift is taxable to quinn

Helen receives the $200 lump sum life insurance payment with her friend Alice dies. How much of the payment is taxable to Helen? Quinn is a tax accountant who works very hard for a large corporate client. The clients is please and give her a gift of ..

  Beale management has a noncontributory

Beale Management has a noncontributory, defined benefit pension plan. The company provided the following information regarding its pension accounts for the fiscal year ended on December 31, 2015.

  Prepare indigo 2017 journal entry to correct the error

Prepare Indigo's 2017 journal entry to correct the error. (Credit account titles are automatically indented when amount is entered.

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