You expect to leave as bequest to your beneficiaries

Assignment Help Financial Management
Reference no: EM131834912

You are planning to save for retirement over the next  40 years. To do this, you will invest $500 a month in a stock account and $300 a month in a bond account. The return on the stock account is expected to be 9.6 percent, and the bond account will pay 5 percent. When you retire, you will combine your money into an account with a 6 percent return. You plan to make monthly withdrawals of $11,000 each and expect to live for 30 years in retirement. How much do you expect to leave as bequest to your beneficiaries?

Reference no: EM131834912

Questions Cloud

Is the yen expected to get stronger or weaker : Suppose the spot and three-month forward rates for the yen are ¥101.17 and ¥102.22, respectively. Is the yen expected to get stronger or weaker?
Calculate the exercise value of the option : Calculate the exercise value of the option? Calculate the exercise value if the price of the stock increases to $62 per share.
Your retirement account on the day you retire : If your investments earn a rate of return of 8.6 percent throughout your working life, how much will be in your retirement account on the day you retire?
Shorten the length of time it will take to pay off your loan : If you are able to do this each month, by how many years will you shorten the length of time it will take to pay off your loan?
You expect to leave as bequest to your beneficiaries : How much do you expect to leave as bequest to your beneficiaries?
Business finance course has motivated : Your business finance course has motivated you to begin investing for retirement in your company's 401K plan.
Price where different securities with the exact payments : The to the law of one price where different securities with the exact payments should have the same intrinsic value.
Calculate your monthly mortgage payment : Your down-payment is 10 percent of the purchase price. calculate your monthly mortgage payment (of principal and interest).
The analyst should use midyear cash flow : The analyst should use midyear cash flow discounting to approximate the daily cash flows.

Reviews

Write a Review

Financial Management Questions & Answers

  Assume that sales-operating costs and total assets

Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $355,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how t..

  Reduce the weighted average cost of capital for firm

Which of the following would tend to reduce the weighted average cost of capital for a firm? Suppose that Acme Inc. is issuing 10-year bonds that are not callable. The required rate of return that the firm must pay to bondholders is 10%. They are als..

  According to dividend-discount model

According to the? dividend-discount model, what is the value of a share of Gillette stock if the? firm's equity cost of capital is 7.4 %?

  Benefit from diversification effect you are also considering

However, to benefit from diversification effect you are also considering investing another $2000 in either Stock B.

  Calculate the company’s weighted average cost of capital

Calculate the Company’s Weighted Average Cost of Capital

  Analyze this case using timmons entrepreneurship framework

Analyze this case using the timmons entrepreneurship framework (entrepreneur-opportunity -resources). particularly note the entrepreneur"s traits and how he gathered resources for his venture.

  Assume a tax rate and discount rate

A machine costs $60 and requires $35 in maintenance for each year of its three year life. After three years, this machine will be replaced. If the machine belongs in a 30% CCA class and has no salvage value, what is the EAC? Assume a tax rate of 34% ..

  Debt obligations outstanding during the construction period

Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,016,100 on January 1, 2014. Harrisburg expected to complete the building by December 31, 2014. Harrisburg has ..

  In evaluating capital budgeting proposed project

In evaluating a Capital Budgeting proposed project, you have the expected After Tax Cash Flow, the life of the proposed project and the Weighted Average Cost of Capital (WACC). The most important of these is the ___ because ___

  Effective interest rate per payment period for interest rate

Find the effective interest rate per payment period for an interest rate of 6% compounded monthly for each of the given payment schedule.

  Prominent consumer products firm

Mudpack, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 20 percent debt. Currently, there are 16,000 shares outstanding, and the price per share is $83. EBIT is expected to rem..

  Calculate blue earnings per share for the year

During 2012, Blue Corporation produced net income of $1,550,000. Calculate Blue's earnings per share for the year.

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