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Ashworth College BU340 all Assignments latest
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Ashworth College BU340 all Assignments latest
 
 
ashworth college BU340 Assignment 4 latest 2016 march
<strongstyle=”font-size: 14<a=””
href=”http://www.homeworkminutes.com/”>.784px;”=””>Directions: Be sure to save an
electronic copy of your answer before submitting it to Ashworth College for grading. Unless
otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and
grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced
pages; refer to the “.ashworthcollege.edu/access/content/group/33c9c4fe-4222-471d-af96-
8a79ed231990/Undergraduate%20Course%20Resources/Assignment%20Format%20-
%20New”>Assignment Format” page located on the Course Home page for specific format
requirements.
ASSIGNMENT 04
BU340 Financial Management I
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth
College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use
correct English, spelling, and grammar.
Respond to the items below.
Part A:Given the following cash inflow at the end of each year,what is the future value of this
cash flow at 6%, 9%, and 15% interest rates at the end of the seventh year?
Year 1 $15,000
Year 2 $20,000
Year 3 $30,000
Years 4 through 6 $0
Year 7 $150,000
Part B:County Ranch Insurance Company wants to offer a guaranteed annuity in units of $500,
payable at the end of each year for 25 years. The company has a strong investment record and
can consistently earn 7% on its investments after taxes. If the company wants to make 1% on this
contract, what price should it set on it? Use 6% as the discount rate. Assume that it is an ordinary
annuity and that the price is the same as present value.
Part C:A local government is about to run a lottery but doesnot want to be involved in the payoff
if a winner picks an annuity payoff. The government contracts with a trust to pay the lump-sum
payout to the trust and have the trust (probably a local bank) pay the annual payments. The first
winner of the lottery chooses the annuity and will receive $150,000 a year for the next 25 years.
The local government will give the trust $2,000,000 to pay for this annuity. What investment rate
must the trust earn to break even on this arrangement?
Part D:Your dreams of becoming rich have just come true. You have won the State of
Tranquility’s Lottery. The State offers you two payment plans for the$5,000,000 advertised
jackpot. You can take annual payments of $250,000 for the next 20 years or $2,867,480 today.
a. If your investment rate over the next 20 years is 8%, which payoff will you choose?
b. If your investment rate over the next 20 years is 5%, which payoff will you choose?
c. At what investment rate will the annuity stream of $250,000 be the same as the lump sum
payment of $2,867,480?
ashworth college BU340 Assignment 8 latest 2016 march
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth
College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use
correct English, spelling and grammar. Sources must be cited in APA format. Your response
should be four (4) double-spaced pages; refer to the
“.ashworthcollege.edu/access/content/group/33c9c4fe-4222-471d-af96-
8a79ed231990/Undergraduate%20Course%20Resources/Assignment%20Format%20-
%20New”>Assignment Format” page located on the Course Home page for specific format
requirements.
ASSIGNMENT 08
BU340 Financial Management I
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth
College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use
correct English, spelling, and grammar.
Respond to the items below.
Part A: Moore Company is about to issue a bond with semiannual coupon payments, a coupon
rate of 8%, and par value of $1,000. The yield-to-maturity for this bond is 10%.
a. What is the price of the bond if the bond matures in 5, 10, 15, or 20 years?
b. What do you notice about the price of the bond in relationship to the maturity of the bond?
Part B: The Crescent Corporation just paid a dividend of $2 per share and is expected to
continue paying the same amount each year for the next 4 years. If you have a required rate of
return of 13%, plan to hold the stock for 4 years, and are confident that it will sell for $30 at the
end of 4 years, how much should you offer to buy it at today?
Part C: Use the information inthe following table to answer the questions below.
State of
Economy
Probability
of State
Return
on A
in
State
Return
on B
in
State
Return
on C
in
State
Boom .35 0.040 0.210 0.300
Normal .50 0.040 0.080 0.200
Recession .15 0.040 -0.010 -0.260
a. What is the expected return of each asset?
b.What is the variance of each asset?
c.What is the standard deviation of each asset?

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Ashworth college bu340 all assignments latest

  • 1. Ashworth College BU340 all Assignments latest https://hwguiders.com/downloads/ashworth-college-bu340-assignments-latest/ Ashworth College BU340 all Assignments latest     ashworth college BU340 Assignment 4 latest 2016 march <strongstyle=”font-size: 14<a=”” href=”http://www.homeworkminutes.com/”>.784px;”=””>Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the “.ashworthcollege.edu/access/content/group/33c9c4fe-4222-471d-af96- 8a79ed231990/Undergraduate%20Course%20Resources/Assignment%20Format%20- %20New”>Assignment Format” page located on the Course Home page for specific format requirements. ASSIGNMENT 04 BU340 Financial Management I Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Respond to the items below. Part A:Given the following cash inflow at the end of each year,what is the future value of this cash flow at 6%, 9%, and 15% interest rates at the end of the seventh year? Year 1 $15,000 Year 2 $20,000 Year 3 $30,000 Years 4 through 6 $0 Year 7 $150,000
  • 2. Part B:County Ranch Insurance Company wants to offer a guaranteed annuity in units of $500, payable at the end of each year for 25 years. The company has a strong investment record and can consistently earn 7% on its investments after taxes. If the company wants to make 1% on this contract, what price should it set on it? Use 6% as the discount rate. Assume that it is an ordinary annuity and that the price is the same as present value. Part C:A local government is about to run a lottery but doesnot want to be involved in the payoff if a winner picks an annuity payoff. The government contracts with a trust to pay the lump-sum payout to the trust and have the trust (probably a local bank) pay the annual payments. The first winner of the lottery chooses the annuity and will receive $150,000 a year for the next 25 years. The local government will give the trust $2,000,000 to pay for this annuity. What investment rate must the trust earn to break even on this arrangement? Part D:Your dreams of becoming rich have just come true. You have won the State of Tranquility’s Lottery. The State offers you two payment plans for the$5,000,000 advertised jackpot. You can take annual payments of $250,000 for the next 20 years or $2,867,480 today. a. If your investment rate over the next 20 years is 8%, which payoff will you choose? b. If your investment rate over the next 20 years is 5%, which payoff will you choose? c. At what investment rate will the annuity stream of $250,000 be the same as the lump sum payment of $2,867,480? ashworth college BU340 Assignment 8 latest 2016 march Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the “.ashworthcollege.edu/access/content/group/33c9c4fe-4222-471d-af96- 8a79ed231990/Undergraduate%20Course%20Resources/Assignment%20Format%20- %20New”>Assignment Format” page located on the Course Home page for specific format requirements. ASSIGNMENT 08 BU340 Financial Management I Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Respond to the items below.
  • 3. Part A: Moore Company is about to issue a bond with semiannual coupon payments, a coupon rate of 8%, and par value of $1,000. The yield-to-maturity for this bond is 10%. a. What is the price of the bond if the bond matures in 5, 10, 15, or 20 years? b. What do you notice about the price of the bond in relationship to the maturity of the bond? Part B: The Crescent Corporation just paid a dividend of $2 per share and is expected to continue paying the same amount each year for the next 4 years. If you have a required rate of return of 13%, plan to hold the stock for 4 years, and are confident that it will sell for $30 at the end of 4 years, how much should you offer to buy it at today? Part C: Use the information inthe following table to answer the questions below. State of Economy Probability of State Return on A in State Return on B in State Return on C in State Boom .35 0.040 0.210 0.300 Normal .50 0.040 0.080 0.200 Recession .15 0.040 -0.010 -0.260 a. What is the expected return of each asset? b.What is the variance of each asset? c.What is the standard deviation of each asset?