Assignment 01 (Mohammed Hamad Al Mazroui) - UNIVERSITY OF MODERN SCIENCE 2015 BUSINESS FINANCE(FINA 321 Assignment 01(FALL Semester 2015-16 INSTRUCTOR

# Assignment 01 (Mohammed Hamad Al Mazroui) - UNIVERSITY OF...

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UNIVERSITY OF MODERN SCIENCE 2015 BUSINESS FINANCE (FINA 321) Assignment: 01 (FALL Semester 2015-16) Page 1 INSTRUCTOR NAME : Dr. Suchi Dubey STUDENT NAME : Mohammed Hamad Al Mazrouei STUDENT ID : 20131496 SECTION : 03
UNIVERSITY OF MODERN SCIENCE 2015 Section A Objective Type Question1.If firm receives a cash flow from an investment that will increase by 10 percent annually for an infinite number of years. This cash flow stream is called a.an annuity due. b.a growing perpetuity. c.an ordinary annuity. d.a growing annuity. 2.Trevor Smith wants to have a million dollars at retirement, which is 15 years away. He already has \$200,000 in an IRA earning 8 percent annually. How much does he need to save each year, beginning at the end of this year to reach his target? Assume he could earn 8 percent on any investment he makes. (Round to the nearest dollar.) 3.If you were to compare the returns of an individual stock to a market index, select the answer below that is most true. Page 2
UNIVERSITY OF MODERN SCIENCE 2015