Accountancy
Ms Hudson is 60 years of age, is in excellent health, pursues a simple but active lifestyle, and has no children. She has interest in a private company for R180 million and has decided that a medical research foundation will receive half the proceeds now and will be the primary beneficiary of her estate upon death.
Currently, the following assets are available for use in building an appropriate portfolio for h:
R90 million cash (from sale of the private company interest, net of a R90 million gift to the foundation)
R20 million stocks and bonds (R10 million each) R18 million warehouse property (now fully leased) R2 million value of his residence
a. Formulate and justify an investment policy statement setting forth the appropriate guidelines within which future investment actions should take place. Your policy statement should encompass all relevant objective and constraint considerations.
b. Recommend and justify a long-term asset allocation that is consistent with the investment policy statement you created in Part a. Briefly explain the key assumptions you made in generating your allocation.
Homework Answers
A. Select and justify with three reasons the most appropriate of the four portfolios from the...
A. Select and justify with three reasons the most appropriate of
the four portfolios from the choices on the table an asset
allocation for the Muellers’ $1 million in personal assets.
B. Select and justify with three reasons the most appropriate of
the four portfolios from as an asset allocation for the Muellers’
$2 million in trust distribution assets.
Ten years have passed. The Muellers, now both aged 63, will retire this year. The distribution from Mark's family trust will...
i need help in writing a 3pages investment policy statement for Bill and Joyce Owens, it...
i need help in writing a 3pages investment policy statement
for Bill and Joyce Owens, it need to include the client profile,
recommended investment strategy, Present an allocation that is
consistent with the strategy it has to match with the profile,
Expecations (which have to get the same return for each of my asset
classes), Syntax (has to sound like an investment policy
statement)
Client Profile Information: Name: Bill and Joyce Owens Address: 123 Any Street, Heartland, ME Client Story...
A portfolio has a market value of S1 million. The initial portfolio value and the portfolio value after one quarter are shown in the following table. Date Portfolio value Money market instruments...
A portfolio has a market value of S1 million. The initial portfolio value and the portfolio value after one quarter are shown in the following table. Date Portfolio value Money market instruments Stocks Jan 1 $1,000,000 $300,000 $700,000 Mar 31 $1,040,000 $300,000 $740,000 The money market instruments earn no interest. Required: Suppose the investment policy statement requires a target asset allocation of 70% in stocks and 30% in money market instruments. The portfolio manager begins to reallocate the funds between...
Accountancy
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Total of 7 questions. See attached photos of questions. Case I: Grant Company acquired 40% of...
Total of 7 questions. See attached photos of questions.
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The question takes up the entire page, so I took two separate photos of it. It...
The
question takes up the entire page, so I took two separate photos of
it. It is a tax accounting question.
on and Basic Tax Model 45. Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. For 2018, he reported the following receipts. Salary $ 80,000 Interest income Money market account at Omni Bank $...
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A. Select and justify with three reasons the most appropriate of
the four portfolios from the choices on the table an asset
allocation for the Muellers’ $1 million in personal assets.
B. Select and justify with three reasons the most appropriate of
the four portfolios from as an asset allocation for the Muellers’
$2 million in trust distribution assets.
Ten years have passed. The Muellers, now both aged 63, will retire this year. The distribution from Mark's family trust will...
i need help in writing a 3pages investment policy statement
for Bill and Joyce Owens, it need to include the client profile,
recommended investment strategy, Present an allocation that is
consistent with the strategy it has to match with the profile,
Expecations (which have to get the same return for each of my asset
classes), Syntax (has to sound like an investment policy
statement)
Client Profile Information: Name: Bill and Joyce Owens Address: 123 Any Street, Heartland, ME Client Story...
A portfolio has a market value of S1 million. The initial portfolio value and the portfolio value after one quarter are shown in the following table. Date Portfolio value Money market instruments Stocks Jan 1 $1,000,000 $300,000 $700,000 Mar 31 $1,040,000 $300,000 $740,000 The money market instruments earn no interest. Required: Suppose the investment policy statement requires a target asset allocation of 70% in stocks and 30% in money market instruments. The portfolio manager begins to reallocate the funds between...
1 -6 nts eBook Print The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net) of $200,000, investments of $300,000, and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty...
QUESTION 1 (25 Marks)1.1 Discuss in detail any SEVEN (7) advantages that big
corporate companies aim to take advantage of when considering an
acquisition. (14 marks)1.2 Explain in detail, what is a hostile take-over. (4 marks)
1.3 Explain each of the following types of mergers in detail:1.3.1 Horizontal Merger (3 marks)1.3.2 Vertical Merger (2 marks)1.3.3 Conglomerate Merger (2 marks)QUESTION 2 (25 Marks)The directors of Dell Limited have appointed you as their
financial consultant. They are considering new investment projects
and...
Question 1 Notcore varied out of 56. Assessing Financial Statement Effects of Adjustments For each of the following separate stations, prepare the necessary accounting adjustments using the financial statement effects template ai Unrecorded depreciation on equipment is 5720 The supplies account has a balance of 53870. Supplies s avable at the end of the period total $1,100 On the date for preparing financial statements, an estimated ties expense of $430 has been incurred, but no utility bill has yet been...
Total of 7 questions. See attached photos of questions.
Case I: Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Basis differences were attributed entirely to goodwill. During the 5- year period from January 1, 2016 through December 31, 2020, Jake reported total net income of $23,000,000 and paid $8,000,000 in dividends. During 2021, Jake reported net income of $3,000,000 and paid $800,000 in dividends. Required: a. Calculate the balance in Investment...
The
question takes up the entire page, so I took two separate photos of
it. It is a tax accounting question.
on and Basic Tax Model 45. Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. For 2018, he reported the following receipts. Salary $ 80,000 Interest income Money market account at Omni Bank $...
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