Your client, Steven, age 43, has come to you for assistance with retirement planning. He provides you with the following facts.

· He earns $80,000 annually.

· His wage replacement ratio has been determined to be 80%.

· He expects inflation will average 3% for his entire life expectancy.

· He expects to work until 68, and live until 90.

· He currently has $60,000 saved, and he is averaging a 9% rate of return and expects to continue to earn the same return over time.

· He has been saving $3,000 annually in his 401(k) plan.

· Additionally, Social Security Administration has notified him that his annual retirement benefit, in today’s dollars will be $26,000.

1. Using calculations, explain to Steven why it is realistic to use a wage replacement ratio of 80%.

2. Using the annuity method, calculate how much capital Steven will need to be able to retire at age 68.

3. Given his current resources, does he have sufficient resources to achieve his retirement goal? Using calculations, show and explain your answer to Steven.

4. Provide Steven with 3 alternatives for meeting his retirement goal. In doing so, use calculations to show the impact of each alternative.

## Category: Finance

## Finance Questions

## Corporate Finance

Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $150,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 9% are projected to be uncollectible. Additional collection costs are projected to be 3% of incremental sales (whether they actually end up collected or not), and production and selling costs are projected to be 77% of sales. Your firm expects to pay a total of 40% of its income after expenses in taxes.

1) Compute the incremental income after taxes that would result from these projections:

2) Compute the incremental Return on Sales if these new credit customers are accepted:

If the receivable turnover ratio is expected to be 2.5 to 1 and no other asset buildup is needed to serve the new customers…

3) Compute the additional investment in Accounts Receivable

4) Compute the incremental Return on New Investment

5) If your company requires a 18% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

## Time value of money

Please show your work.

Decision #1: Which set of Cash Flows is worth more now?

Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive:

Option A: Receive a one-time gift of $ 8000 today.

Option B: Receive a $1250 gift each year for the next 10 years. The first $1250 would be

received 1 year from today.

Option C: Receive a one-time gift of $15,000 10 years from today.

Compute the Present Value of each of these options if you expect the interest rate to be 3% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Compute the Present Value of each of these options if you expect the interest rate to be 6% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Compute the Present Value of each of these options if you expect to be able to earn 9% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Decision #2 begins at the top of page 2!

Decision #2: Planning for Retirement

Luke and Olivia are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $1800 per year to prepare for retirement. Olivia just told Luke, though, that she had heard that they would actually have more money the day they retire if they put $1800 per year away for the next 10 years – and then simply let that money sit for the next 35 years without any additional payments – than they would have if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do).

Please help Luke and Olivia make an informed decision:

Assume that all payments are made at the end of a year, and that the rate of return on all yearly investments will be 8.4% annually.

a) How much money will Luke and Olivia have in 45 years if they do nothing for the next 10 years, then put $1800 per year away for the remaining 35 years?

b) How much money will Luke and Olivia have in 10 years if they put $1800 per year away for the next 10 years?

b2) How much will that amount you just computed grow to if it remains invested for the remaining

35 years, but without any additional yearly deposits being made?

c) How much money will Luke and Olivia have in 45 years if they put $1800 per year away for each of the next 45 years?

d) How much money will Luke and Olivia have in 45 years if they put away $150 per MONTH at the end of each month for the next 45 years? (Remember to adjust the 8.4% annual rate to a Rate per month!)

e) If Luke and Olivia wait 25 years (after the kids are raised!) before they put anything away for retirement, how much will they to put away at the end of each year for 20 years in order to have $800,000 saved up on the first day of their retirement 45 years from today?

## BUSI 320-Corporate Finance Exam 3

I need solutions to connect exam 3 for Busi 320 corporate finance.

## two-stock portfolio

Of the $10,000 invested in a two-stock portfolio, 30 percent is invested in Stock A and 70 percent is invested in Stock B. If Stock A has a beta equal to 2.0 and the beta of the portfolio is 0.95, what is the beta of Stock B?

## FIN/370 Finance for Business

**Select** one of the publicly traded corporations listed below and obtain the most current SEC Form 10-K (annual financial report) from the company’s web site (Do not use the Annual Report that is sent to shareholders):

The company I’m using is Apple corporation.

** **

** **

**Calculate** and **analyze **the following ratios for your selected company for the last two years from the SEC Form 10-K:

- Current Ratio
- Inventory Turnover
- Debt Ratio
- Time Interest Earned
- Gross Profit Margin
- Equity Multiplier
- Return on Assets
- Net Profit Margin
- Return on Equity (Use three ratio DuPont method)

**Compare** and **contrast** your company’s ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources, and provide a detailed answer and analysis as to why your company’s ratios are different than the industry/competitor standard.

**Prepare **your analysis in a minimum of 875 words in Microsoft^{®} Word. The use of Microsoft^{®} Word tables is encouraged.

**Cite** the source of the industry/competitor ratio information.

**Format** your assignment consistent with APA guidelines.

## International Financial Reporting Standards

Explore the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) Web sites, and complete the following:

Explain what the IASB/FASB roadmap for convergence to International Financial Reporting Standards (IFRS) was set up to accomplish.

Describe at least 1 project that is being explored with regard to the roadmap, and provide details about the objective and status of the project at this time.

Review the project summary for the conceptual framework project, and respond to the following:

https://www.iasplus.com/en/projects/completed/framework/framework-joint

What do you view as the key differences in this project?

Provide your opinion on whether you believe that a single set of standards should be the goal of a global economy.

What do you see as the benefits and barriers to the process?

## Financial Literacy

Complete the table for Homework for Unit 10 Homework Practice Problems. After you determine your annual salary, divide by 12 to get monthly salary and base budget for monthly expenses. Be sure to list the fraction, decimal, and percentage representations correctly. This assignment is to help you organize for the Financial Literacy Project. It is worth 20 points: 5 points for expense list and amount, 5 points for correct fraction, 5 points for correct decimal, and 5 points for correct percent. Important Note: The final version of this table should also be included in your Financial Literacy Assignment.

## Corporate Governance and Performance of Saudi Listed Firm

My proposal file is after proofreading

I would like to tell you this last chance for me to succeed.

I also hope you will work and adjust all the supervisor’s notes.

——————————————————————————————————————

This are my supervisor feedback you must address all of them

Introduction could be (much) more closely geared to explaining the contents of the proposal. It is actually a ‘background to intended field of research.

Aims and Objectives could be more precise.

Theoretical Literature Review would be improved with the inclusion of an introductory sentence to explain what the review covers (and why )

Empirical Literature Review could be more closely related to what has been tested, what the results were and how they relate to your Research Questions and forthcoming Methodology. A summary table of key (relevant) findings would have been useful.

Measurement of Variables Looks like the intended dependent variables will be ROA, Tobin’s Q and ROE and the dependent variables will be Board size, Board independence and Audit Committee size. The explanation could be clearer, though.

Control Variables Firm size and leverage are explained adequately but ‘industry’ is not.

Hypotheses are not stated in the traditional manner (Ho and Ha).

Methodology Any reason for choosing 2012 to 2016 for data? Again, the ‘industry’ variable could be explained more clearly.

Population and data . Any reason for selecting 65 companies?

Research Ethics ‘Human respondents