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Using data from the Economic Report of the President, calculate velocity for the M2 definition of the money supply in the past five years. Does velocity appear to be constant?
Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow at a constant rate of 7.00%. What was the last free cash flow, FCF0 in millions?
Discuss the main causes of the financial crisis of 2008? Identify the main risk that contributed to this crisis
On January 1, 2019, Joan Campbell borrows $20,000 from Susan Rone and agrees to repay this amount in payments of $4,000 a year until the debt is paid in full. Payments are to be of an equal amount and are to include interest at 12% on the unpaid balance of principal at the beginning of each period. Assuming that the first payment is to be made on January 1, 2020, determine the number of payments of $4,000 each to be made and the amount of the final payment.
What is the future value on December 31, 2026, of 7 annual cash flows of $10,000 with the first cash payment made on December 31, 2019, and interest at 12% being compounded annually?
On January 1, 2019, Joan Campbell borrows $20,000 from Susan Rone and agrees to repay this amount in payments of $4,000 a year until the debt is paid in full. Payments are to be of an equal amount and are to include interest at 12% on the unpaid balance of principal at the beginning of each period. Assuming that the first payment is to be made on January 1, 2020, determine the number of payments of $4,000 each to be made and the amount of the final payment.
What is the future value on December 31, 2026, of 7 annual cash flows of $10,000 with the first cash payment made on December 31, 2019, and interest at 12% being compounded annually?
You need P5,000 per year for four years to go to college, your father invested P6,000 in 7% account for your education when you were born. If you withdraw at the end of your 17th, 18th, 19th and 20th birthday, how much will be left in your account at the end of your 21st birthday.
Question - Risk and Risk Avoidance
Prompt: In investments, a higher risk may provide higher returns. It is interesting how people have different comfort levels taking risks. Please consider your own comfort with taking risks; are you a person who is willing to take a risk in order to earn a higher level of return on investment?
Instructions: Answer this prompt with a comprehensive response that includes reasons for the yes or no prompt.
Context Link: https://saylordotorg.github.io/text_personal-finance/s08-evaluating-choices-time-risk-a.html
Extra Directions: Respond to this prompt as if you were a sixteen-year-old in high school as a sophomore.
Planning to Buy a Home
For this discussion discuss the pros and cons of buying a home. Compare the costs and benefits. Include your alternatives.
Create a list:
- Pros/Cons
- Costs/Benefits
- Alternatives
Use this list as an original post and explain how this list might influence your overall decision to buy or not buy a home.
Context Link: https://saylordotorg.github.io/text_personal-finance/s13-buying-a-home.html
Discussion Questions: According to an article by CNBC, a new survey finds the median American household has $2,729 in a savings account in 2019 and 34% of Americans have nothing saved. What does this say about Americans' financial management? How does the lack of saving impact other Americans?
Prompt: I find this issue to have two sides to it: This represents not only people that let their money slip away from them and spend it all, but also people that do not have the financial ability to save. Some people that are living paycheck to paycheck do not have any spare money to put into a savings account. With bills, rent, groceries, and any dependent/family costs to deal with, some families are not financially able to put any money into a savings account.
Instructions: According to the discussion questions, include in your response whether or not you agree or not and the reason(s) why in regards to the prompt.
Discussion Questions: According to an article by CNBC, a new survey finds the median American household has $2,729 in a savings account in 2019 and 34% of Americans have nothing saved. What does this say about Americans' financial management? How does the lack of saving impact other Americans?
Prompt: I personally think that majority of Americans today just simply cannot afford to put money into saving accounts and that they need to money earned to keep them afloat. Especially in this time of inflation and job loss, poverty and the divide between the haves and the have nots is quite harsh. And the lack of savings for each American individual could mean very bad news and they can easily go into debt from a large purchase or finical risk.
Instructions: According to the discussion questions, include in your response whether or not you agree or not and the reason(s) why in regards to the prompt.
