After you graduate from college and start your professional career, you will need to consider investing for your retirement. A 401(k) plan is a retirement plan offered by many companies. S
1. Please use your won words to write 240 words to answer Discussion Question ( SEE ATTACHMENT) (USE AT LEAST 1 APA FORMAT REFERENCE)
2. Please use your won words to reply 80 words to a classmate answer ( I will post later)
3.Please use your won words to write 3 pages to answer PA2 ( SEE ATTACHMENT) (USE AT LEAST 5 APA FORMAT REFERENCES)
I will check plagiarism, Plagiarism check under 20%
Discussion Question
The 401(k) plan has several options for investments, most of which are mutual funds. A mutual fund is a portfolio of assets. When you purchase shares in a mutual fund, you are actually purchasing partial ownership of the fund’s assets. The return of the fund is the weighted average of the return of the assets owned by the fund, minus any expenses. The largest expense is typically the management fee, paid to the fund manager. The management fee is compensation for the manager, who makes all of the investment decisions for the fund.
Consider the following questions based on the history of capital markets.
1. What advantages do mutual funds offer compared to the company stock?
2. Assume that you invest 5 percent of your salary and receive the full 5 percent match from your employer. What EAR do you earn from the match? What conclusions do you draw about matching plans?
,
Professional Assignment 2
PA 2 includes two parts: Part 1 is an evaluation of beta and WACC, and Part 2 the acquisition of data in preparation for CLA 2. You need to complete both parts in your 3 page, APA-formatted report to demonstrate your comprehensive evaluation of the company's opportunity cost as well as your skills in retrieving and organizing historical data on securities for the purpose of portfolio formation.
1. Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation.
· Provide these statements in proper format and include a screenshot of the data.
· Retrieve the data on the company’s historical data and calculate its annual rate of return by using adjusted closing prices for the past 20 years.
· Using the data on the company's stock rate of return and the index’s rate of return, estimate the beta of the corporation. Compare this value with the value stated by the source.
· Retrieve the risk-free rate of return as the annual interest rate of US treasuries. Based on these values, estimate the expected annual rate of return of the corporation’s security. Compare your estimate with the expected rate of return as evaluated based on your data in Part 2.
· Using the financial statements mentioned above, estimate the annual rate of interest paid by the corporation (cost of debt).
· Additionally, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values, estimate the annual weighted cost of capital (WACC) of the corporation.
2. This part of the assignment is in preparation for CLA 2. Choose five (5) major securities from different industries, one of which can be the one you chose in Part 1 of the question.
· Retrieve the data on the companies’ historical data and calculate annual rate of return for the past 20 years for each security.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
