7. You could also invest part of the fund in shares. A McDonald's share currently sells...
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7. You could also invest part of the fund in shares. A McDonald's share currently sells for $273.20 and pays a quarterly dividend of $2.20. If you want to hold the shares for 3 years, what price would you need to sell the share for in order to attain an average annual return of 6.85% ? Round your answer to 2 decimals (for example, 45.239 = 45.24). Answer: For your calculations: 8. You are looking at two different investments that you think may be interesting for the fund. What is the average annual return on each of these investments? Round your answer to 2 decimals and give as a % (for example 45.239% = 45.24%). Investment 1 Investment 2 Investment 1 Investment 2 sales price in 3 years' time For your calculations: would require you to invest the entire fund today, and would require the beneficiaries to contribute another $25'000 per quarter for the next 8 years in order to obtain $6'500'000 at the end of the 8th year. would require you to invest the entire fund today and would pay out $850'000 at the end of the first year, $1'000'000 at the end of the second year, $1'100'000 at the end of the third year and $1'500'000 at the end of the fourth year. annual rate annual rate 7. You could also invest part of the fund in shares. A McDonald's share currently sells for $273.20 and pays a quarterly dividend of $2.20. If you want to hold the shares for 3 years, what price would you need to sell the share for in order to attain an average annual return of 6.85% ? Round your answer to 2 decimals (for example, 45.239 = 45.24). Answer: For your calculations: 8. You are looking at two different investments that you think may be interesting for the fund. What is the average annual return on each of these investments? Round your answer to 2 decimals and give as a % (for example 45.239% = 45.24%). Investment 1 Investment 2 Investment 1 Investment 2 sales price in 3 years' time For your calculations: would require you to invest the entire fund today, and would require the beneficiaries to contribute another $25'000 per quarter for the next 8 years in order to obtain $6'500'000 at the end of the 8th year. would require you to invest the entire fund today and would pay out $850'000 at the end of the first year, $1'000'000 at the end of the second year, $1'100'000 at the end of the third year and $1'500'000 at the end of the fourth year. annual rate annual rate
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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