Essay on Homework Business Policy

Words: 871

Pages: 4

Open Document

Week 3 - Homework P4-1. A best-selling author decides to cash in on her latest novel by selling the rights to the book’s royalties for the next four years to an investor. Royalty payments arrive once per year, starting one year from now. In the first year the author expects $400,000 in royalties, followed by $300,000, then $100,000, and then $10,000 in the three subsequent years. If the investor purchasing the rights to royalties requires a return of 7 percent per year, what should the investor pay?
A4-1 P = $400,000+$300,000+$100,000+$10,000=$725,122.13 1.071 1.072 1.073 1.074 P4-12. Bennifer Jewelers recently issued 10-year bonds that make annual interest payments of $50. Suppose you purchased one of these …show more content…
Suppose also that the current Treasury bill yield is 1.5%, but the historical average return on Treasury bills is 4.1%. Estimate the expected return on stocks and explain how and why you arrived at your answer.
A7-1
T-bills are expected to return 1/5%+7.6%=9.1%
T-bills yeilds are expected to return 4/1%+7.6%=11.7%
The current expectation is 9.1% and over the long haul, one can expect 11.7% return. b. Suppose that, over the long run, the risk-premium on stocks relative to Treasury bonds has been 6.5%. The current Treasury bond yield is 4.5%, but the historical return on T-bonds is 5.2%. Estimate the expected return on stocks and explain how and why you arrived at your answer.
Based on T-bills, expected returns are 4.5%+6.5%=11%.
Historical returns, expected returns are 5.2%+6.5%=11.7% c. Compare your answers above and explain any differences.
Bond yields appear to provide better long run stock returns. T-bills rates may have more variables but may stray from the long

ACC500Sept2014Syllabus 1 1 Essay

School of Business Course Syllabus ACC 500-G1004 Managerial Accounting Term/Year: Fall 2014 CENTER: Graduate September 2, 2014 – November 4, 2014 Faculty Name: Bryan C. Bouchard Email Address: b.bouchard@snhu.edu Office Location: Webster 219C Office Phone: 603-644-3186 Office Hours: Monday 9:15-11:00 Tuesday 10:45 - 2:00 Wednesday 9:15-11:00 (On Tuesdays during free period 3:30-4:45 I will be in the Learning…

Words 970 - Pages 4

Bankruptcy in the United States and Comprehensive Final Exam Essay

Libby Fundamentals of Financial Accounting (with 2008 Home Depot Annual Report). Connect Software: New textbooks will come with the code you will need to create an account for the online homework system called Connect. This program can be accessed utilizing the URL listed above and you will submit your homework assignments (other than Writing and Excel Assignments) using this website. You can also use the Study and Practice sections of Connect to complete chapter review tutorials, page activities…

Words 2445 - Pages 10

Risk and Carey Business School Essay

learning community, the Carey Business School is committed to continuous improvement. The faculty strongly encourages students to provide complete and honest feedback for this course. Please take this activity seriously because we depend on your feedback to help us improve so you and your colleagues will benefit. Information on how to complete the evaluation will be provided towards the end of the course. Disability Services: Johns Hopkins University and the Carey Business School are committed to making…

Words 1588 - Pages 7

Essay about Financial Markets

FIN 3636 Financial Markets and Institutions Spring 2015 Instructor: Meredith Rhodes Office Hours: By Appointment Office: 2600A Business Education Complex Email: mrhode8@lsu.edu Class Time: 9:30-10:20am MWF Classroom: BEC 1845 Course Objectives: The purpose of this course is to provide a practical introduction to today’s changing landscape of financial markets and institutions. On one hand we will discuss the characteristics of instruments used in the financial markets to facilitate the flow of funds…

Words 1091 - Pages 5

Days of the Year and Midterm Examination Essay

University of Manitoba I. H. Asper School of Business Department of Accounting and Finance Winter 2012 ACC 1100 INTRODUCTORY FINANCIAL ACCOUNTING A01 Tuesday and Thursday 8:30 a.m. – 9:45 a.m. Instructor: Sonja Carney Office: 374 Drake Centre Office Hours: Monday and Wednesday 10:00 a.m. – 12:00 p.m. or by appointment Telephone: Fax: E-mail: 474-9709 474-7545 Sonja_Carney@umanitoba.ca INTRODUCTION Accounting is the language of business. If you do not understand its fundamental concepts…

Words 3503 - Pages 15

Contemporary Macroeconomics

course will provide students with the analytical skills necessary and utilize basic theories of economics to expose the student to a number socio-economic issues and policies that we face today. Issues such as globalization, poverty, taxation, minimum wage, immigration, monetary policy, financial crisis, European debt crisis, and business cycles, will be discussed and analyzed. The objective is for the student to see how economics can be used to better understand the world around us. The emphasis is…

Words 1989 - Pages 8

Some Paper that I have to upload

responsible for all material covered and announcements made during class, whether or not you are present. Homework Assignments Exercises and problems are assigned for each chapter. Experience indicates there is a strong relationship between the number of homework problems successfully completed by a student and his or her final grade in an accounting course. You are expected to complete homework assignments in time for the related class discussion. It is your responsibility to be prepared to respond…

Words 1730 - Pages 7

syllabus MGT205 Essay

and management of growth;  Providing degree programs that prepare our students to be effective managers and responsible community leaders with a deep understanding of the dynamics of growth in both a regional and global context; Partnering with business and community leaders through a shared commitment to exemplary growth; and Delivering educational programs to executives and the public at large that respond to the needs of our local, state, national, and international communities. MBA Program -…

Words 1193 - Pages 5

Essay about ACCT401 8wk Syllabus 3

decisions that individuals and unincorporated businesses make. I. Prerequisite ACCT 212 II. Required Resource Purchase Spilker, B., Ayers, B., Robinson, J., Outslay, E., Worsham, R., Barrick, J., & Weaver, C. (2015). Taxation of individuals and business entities with connect plus (6th ed.). New York, NY: McGraw-Hill. ISBN: 9780077726119. Disclaimer: The above resource provides information consistent with the latest research regarding the subject area. Liberty University does not necessarily endorse…

Words 799 - Pages 4

Final Examination and Class Attendance Class Essay

Rabbe, West’s Federal Taxation: Comprehensive Volume, 2013 Edition (West Publishing Company) COURSE OBJECTIVE: To achieve a practical and academic understanding of the Internal Revenue Code and Regulations as they pertain to the taxation of business organizations, such as corporations, partnerships, S corporations, with emphasis on the reasons for the historical development of the tax law as well as its impact on various fact patterns through the use of assignments in tax research and tax return…

Words 638 - Pages 3