Diversification Illustration (Invenst $10,000 over 25 years)
Part A
Investment Strategy 1: All
Investment Strategy 2: Invest equally in 5 different
funds in one asset
assets
Number of assets
1 Number of assets
5
Initial investment
10000 Amount invested pe
Annual savings from Project X include a reduction in ten clerical employees with annualsalaries of $15,000 each, $8,000 from reduced production delays, $12,000 from lost
salesdue to inventory stockouts, and $3,000 in reduced utility costs.Project X costs
FN2640 Project
Part A
YTM
First Scenario
Ending Scenario (+ 1%)
Bond A
9.20%
10.20%
Bond B
$952.76
$915.47
Value of Portfolio
$903.41
$1,856.16
$832.81
$1,748.29
Difference
-37.29
-70.6
% Change
-0.0391389227
-0.078148349
Part B
YTM
Sale
First Scenario
En
1. Which of the following statements would be false? The
discount rate is
o An instrument of monetary policy
o All of the listed options are true
o Regarded as a fine-tuning mechanism
o Frequently used as a tool of fiscal policy
2. What is the payback per
Alyssa Santangelo
ITT Technical Institute
FN2640 Fundamentals of Finance
11/9/2015
General Motor Company
Current Ratio- $83,670,000 / $144,220,000 = 0.580 the current ratio is a measure of the companys
ability to pay off its short-term debt as it comes du
Question:
Genatron wants to estimate what will happen to its income before interest and taxes if its net sales change from the 2012 level of
$1,500,000. Refer to Genatrons 2012 income statement below, where the income before interest and taxes is $247,000
Question:
Estimate the weights (wi) for assets in the three portfolios given the following information about the portfolio holdings:
a.
Stock A
Stock B
Stock C
Price
$25
$53
$119
Price
b.
Bond A
Bond B
Bond C
Bond D
$975
$1,020
$888
$1,150
Price
c.
Stock
Question:
The Garcia Companys bonds have a face value of $1,000, will mature in ten years, and carry a coupon rate of 16 percent. Assuming that the interest payments are made semi-annually, answer the
following:
a. Determine the present value of the bonds
Alyssa Santangelo
Lab 1
FN2640
You are planning to invest $2,500 today for three years at a nominal interest
rate of 9 percent with annual compounding.
A. Future Value= 2500 * [1.09]^3 = 3,237.57
Now assume that inflation is expected to be 3 percent per y