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Investment analysis and portfolio management

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RMcAlister HW Week#1 FIN640 11.23.14.xlsx Download Attachment;CHAPTER 1 FIN640 Investment Analysis & Portfolio Management;Problem #3-4;Robert McAlister;3. At the beginning of last year, you invested $4,000 in 80 shares of the Change Corporation. During the year, Chang paid dividends of $5 per share. At the end of the year, you sold the 80 shares for;$59 a share. Compute your total HPY on these shares and indicate how much was due to the price change and how much was due to the dividend income.;4. The rates of return computed in Problems 1, 2, and 3 are nominal rates of returns. Assuming that the rate of inflation during the year was 4%, compute the real;rates of return on these investments. Compute the real rates of return if the rate of inflation was 8%.;CHAPTER 2 FIN640 Investment Analysis & Portfolio Management;Problem #4-5;Robert McAlister;4 (a) Someone in the 36% tax bracket can earn 9% annually on her investments in tax-exempt IRA account. What will be the value of a one-time $10,000 investments;in 5 years? 10 years? 20 years?;4 (b) Suppose the preceding 9% return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of her $10,000 investment after 5, 10, and 20 years?;5 (a) Someone in the 15% tax bracket can earn 10% on his investments in a tax-exempt IRA account. What will be the value of a $10,000 investment in 5 years? 10 years? 20 years?;5 (b) Suppose the preceding 10% return is taxable rather than tax-deferred. What will be the after-tax value of his $10,000 investment after 5, 10, and 20 years?;View Full Attachment

 

Paper#18228 | Written in 18-Jul-2015

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