Variety of investments for your 401K plan/TUTORIALOUTLET DOT COM Variety of investments for your 401K plan/TUTORIAL

Variety of investments for your 401K plan
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You start a new job. They give you a variety of investments for your
401K
plan. You have 4 choices
A money market fund that historically has returned 2.5% per year
A long term bond fund with an average annual return of 6%
A conservative common stock fund that has earned 8% per year.
An aggressive common stock fund that has earned 14% per year.
If you want to contribute $5000 per year for the next 20 years, how
much
will you have with each of the options? Yreka Pag paper company is a
big producer of paper products. Due to its
increased use of recycled materials, analysts expect that the firms
earnings and dividends will grow at 15% per year for the next 5 years.
After that, analysts believe that competitors will catch up so the
growth
rate will decline to a historical run rate of 8%. If their most recent
dividend
(Do) is .35 and the required rate of return is 12%, what is the value of
the
stock today. If a company just paid a dividend of $2.00 per share, the
required rate of return is 9% and the growth rate is 3% then the
value of the stock is You decide to buy a small office building with 1
tenant. The tenant
has a lease that calls for monthly rent payments of $2,500 per month
for the next 6 years. After that, the lease expires. You expect to be
able to increase the rent 4% per year for years 7-12. At the end of year
12 you intent to sell the building for $200000
Create a table showing the projected cash flows for the investment,
assuming the next rental payment occurs one month from today.
Assuming you need to earn 11% on this investment, what is the
maximum price you would be willing to pay for the building today?
(ignore taxes and amortization for this analysis) You want to buy a