Stock Return | Assignment-1

Added on 2022-09-09

13 Pages1353 Words13 Views

Running head: STOCK RETURN
Stock Return
Name of the Student:
Name of the University:
Author Note:

STOCK RETURN2
Table of Contents
Answer to Question 1:................................................................................................................4
Part a:.....................................................................................................................................4
Part b:.....................................................................................................................................4
Part i:..................................................................................................................................4
Part ii:.................................................................................................................................5
Part c:.....................................................................................................................................5
Part i:..................................................................................................................................5
Part ii:.................................................................................................................................6
Answer to Question 2:................................................................................................................6
Part a:.....................................................................................................................................6
Part b:.....................................................................................................................................6
Answer to Question 3:................................................................................................................7
Part a:.....................................................................................................................................7
Part i:..................................................................................................................................7
Part ii:.................................................................................................................................7
Part b:.....................................................................................................................................7
Part i:..................................................................................................................................7
Part ii:.................................................................................................................................8
Answer to Question 4:................................................................................................................9
Part i:..................................................................................................................................9
Part ii:.................................................................................................................................9

STOCK RETURN3
Part iii:................................................................................................................................9
Part iv:................................................................................................................................9
Part v:...............................................................................................................................10
Part vi:..............................................................................................................................10
Answer to Question 5:..............................................................................................................10
Part a:...................................................................................................................................10
Part b:...................................................................................................................................10
Part c:...................................................................................................................................11
Part d:...................................................................................................................................11
Part e:...................................................................................................................................11
Part i:................................................................................................................................11
Part ii:...............................................................................................................................12
Bibliographies:.........................................................................................................................13

STOCK RETURN4
Answer to Question 1:
Part a:
The future value of the fund required is $90000 and the amount needed to be saved
each quarter is $3143.17.
Figure 1:
Source:
Part b:
Part i:
The investment should be purchased at the required return of 12%, since the project is
generating positive NPV of $5032822 and the IRR of the project is 18% which is greater than
the required return.

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