Time Value Of Money Project Please Show All

Time Value Of Money Projectname Please Show All You

Time Value of Money Projectname Please Show All You

Time Value of Money Project Name: __________________ Please show all your work if you use the Calculator. If done in Excel, please send me the spreadsheet / workbook. 1. What is the market value of the following bond? Coupon 8% Maturity date 2038 Interest paid semiannually Par Value $1000 Market interest rate 10% 2.

What is the market value of the following bond? Coupon 9% Maturity date 2028 Interest paid semiannually Par Value $1000 Market interest rate 8% 3. What is the market value of the following bond? Coupon 9% Maturity date 2027 Interest paid semiannually Par Value $1000 Market price $955.. What is the yield to maturity of the following bond? Coupon 9% Maturity date 2027 Interest paid semiannually Par Value $1000 Market price $955. What is the current yield of bond in Question 3?

5. The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm? 6. What should a zero coupon bond maturing for $1000 in 9 years with a 7% market rate sell for?

7. Preferred stock has a dividend of $12 per year. The required return is 6%. What should be the price per share? 8.

Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per share. The required return is 8%. A. What is the estimated value of a share of common stock?

B. If price is $40 and dividends were $1.50 per share but expected to grow at 4% per year, what would be the required rate of return? 9. Compute the expected return for the following investment State of nature Probability Return Boom 25% 20% Average 60% 8% Recession 15% 0% 10. The following are the expected returns on a portfolio of investments.

What is the expected rate of return on the portfolio? Investment # of shares Price per share Expected return A. 2000 $20 10% B. 3000 $10 15% C. 1000 $15 8% 11.

You take out a $200,000 mortgage for 20 years at 6%. What is your monthly payment? What is the principle and interest on the first payment? What is the principle and interest on the twelfth payment? How much interest will you pay over the 20 years?

12. You bought a house 8 years ago with a $250,000 mortgage. It was a 15 year loan with monthly payments which will pay off the loan when you make the last payment. The interest rate was 6%. What are your monthly payment and your current loan balance? How much interest will you pay in the upcoming year? 13. You want to retire has a millionaire. How much do you need to put away each month if: A. You use common stocks and have an average return of 10%? B. You use corporate bonds and have an average return of 6%? C. You use government bonds and have an average return of 4%? D. You put your money in a CD at 2.5% interest rate? (Please use your own age. If you are over 45, please solve for saving a $100,000.) 14. You are offered a contract with a signing bonus. If they offered you either $215,000 in cash or $2,000 a month for 15 years, guaranteed, which do you take (based strictly on the math)? Your safe rate of return is 7.5%.

15. You are 30 years old today and planning to retire at age 62. You want to plan your finances for living 35 years past age 62 and die dead broke. You determine you will need $3000 per month from age 62 for the 35 years. Your plan is to go live in the tropics, on the beach, and live on coconuts and fishing. Also, you need to conclude your retirement savings at age 55 because all your spare money then will be going to your children’s education. The question is how much money you will need to save each month between now and 55 so that you can quit contributing. The expected return on your investments over the whole period is 10% per year. Please ignore inflation. Final Project: Porter’s Five Forces While a SWOT analysis focuses mostly on the internal mechanisms within a company, Porter’s Five Forces examines the larger economic factors that influence a company’s potential success.

For your final project, you are going to work in teams of 1, 2, or 3, choose a company and analyze their potential for success using Porter’s Five Forces. Here are the five forces: · rivalry among existing firms · threat of new entrants · threat of substitute products or services · bargaining power of buyers · bargaining power of suppliers These are the headings you will use in your paper. You should have at least one page of writing and analysis per force. Other Requirements Please include at least two graphs or other form of visual data and cite them in APA format. Use as many sources as you need, but I don’t see this assignment being done with any less than ten.

Presentations At the end of the semester you are going to present your findings to the class in a 10-15 minute visual presentation. It is recommended to use PowerPoint or Prezi, but any kind of visual representation is fine. Please do not show any videos during the presentation. It should be your words, not someone else’s. First Submission (10 points): Friday April 19th at 11:59 PM EST Final Submission (20 points): Friday May 10th at 11:59 PM EST Presentations (10 points): The last two class sessions of the semester

Paper For Above instruction

The assignment primarily involves calculating various financial metrics such as bond values, yields, and returns, as well as planning for retirement savings and evaluating investment options. Additionally, a comprehensive analysis using Porter’s Five Forces on a chosen company is required, including visual data representation and a thorough written assessment. The project culminates in a presentation to the class during the final semester sessions.

The financial calculations include determining bond market values based on coupon rates, market interest rates, and maturity dates, calculating yield to maturity, current yield, and assessing the fair value of preferred stocks and zero-coupon bonds. Further, the assignment requires evaluating dividend growth models, expected returns, portfolio analysis, mortgage payments, and retirement savings projections under different investment scenarios. The overall goal is to demonstrate understanding of time value of money concepts, investment valuation, and risk analysis.

The final project demands a detailed Porter's Five Forces analysis of a selected company, supported by visual data such as graphs. The report should have a minimum of ten credible references. The presentation will convey the findings in a clear, engaging manner, strictly using the student’s own words without reliance on video content. Submissions at specified deadlines, including initial and final papers and presentations, are part of the grading criteria.

References

  • Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
  • Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of Corporate Finance (12th ed.). McGraw-Hill Education.
  • Damodaran, A. (2010). The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses. FT Press.
  • Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance (12th ed.). McGraw-Hill Education.
  • Kat, H. M., & Lewis, M. M. (2020). Principles of Financial Engineering. Springer.
  • Investopedia. (2023). Bond Price. https://www.investopedia.com/terms/b/bondprice.asp
  • Morningstar. (2023). Portfolio Analysis. https://www.morningstar.com/
  • U.S. Securities and Exchange Commission. (2022). How to Read a Bond. https://www.sec.gov/investor/pubs/usingbonds.htm
  • Federal Reserve. (2023). Economic Data and Research. https://www.federalreserve.gov/econresdata/
  • Statista. (2023). Market Data & Industry Reports. https://www.statista.com/

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