Laurel Wilson has a portfolio of five stocks. The stocks 'actual investment performance last year is given below along with an estimate of this year's performance.
last year this year
Stock Investment Return Investment Return
A $50,000 8.0% $55,000 8.5%
B 40,000 6.0 40,000 7.0
C 80,000 4.0 60,000 4.5
D 20,000 12.0 45,000 9.0
E 60,000 3.0 50,000 5.0
Compute the actual return on Laurel's overall portfolio last year and its expected return this year.
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Laurel Wilson has a portfolio of five stocks. The stocks 'actual investment performance last year is...
Standard deviation is a useful concept in performance management. Let us say that a director in a local fire department wants to know any variation between the performance of this year and that of the last year. He draws a sample of 10 response times of this year ( in minutes): 3.0, 12.0, 7.0, 4.0, 4.0, 6.0, 3.0, 9.0, 11.0, and 15.0, comparing them with a sample of 10 response times last year ( in minutes): 8.0, 7.0, 8.0, 6.0,...
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An investment will pay $16,100 at the end of each year for eight
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year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use
the appropriate factor(s) from the tables provided.)
Determine the present value of this investment using a 6% annual
interest rate. (Round your answer to nearest whole
dollar
Future Value of Annuity of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0%...
1. Tim Smith is shopping for a used luxury car. He has found one priced at $36,000. The dealer has told Tim that if he can come up with a down payment of $5,500, the dealer will finance the balance of the price at a 8% annual rate over 2 years (24 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month)...
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You are the new controller for Moonlight Bay Resorts. The
company CFO has asked you to determine the company’s interest
expense for the year ended December 31, 2021. Your accounting group
provided you the following information on the company's debt: (FV
of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables provided.)
On July 1, 2021, Moonlight Bay issued bonds with a face amount
of $2,000,000....
John Wiggins is considering the purchase of a small restaurant.
The purchase price listed by the seller is $1,000,000. John has
used past financial information to estimate that the net cash flows
(cash inflows less cash outflows) generated by the restaurant would
be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
Years
Amount
1-6
$
100,000
7
90,000
8
80,000...
Federated Fabrications leased a tooling machine on January 1, 2021, for a three-year period ending December 31, 2023. The lease agreement specified annual payments of $35,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2022. The company had the option to purchase the machine on December 30, 2023, for $44,000 when its fair value was expected to be $59,000, a sufficient difference that exercise seems reasonably certain. The machine's estimated useful life...
On December 31, 2018, Rhone-Metro Industries leased equipment to
Western Soya Co. for a four-year period ending December 31, 2022,
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expected useful life of six years. Its normal sales price is
$302,915. The lessee-guaranteed residual value at December 31,
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are due on December 31 of each year. The...
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You are the financial planner for Johnson Controls. Assume last year's profits were $720,000. The board of directors decided to forgo dividends to stockholders and retire high-interest outstanding bonds that were issued 6 years ago at a face value of $1,340,000. You have been asked to invest the profits in a bank. The board must know how much money you will need from the profits earned to retire the bonds in 10 years. Bank...