College Finance Class Help Needed...Dealing with Interest and Rate of Return?
I have a few questions I am having a hard time with, so maybe someone can help. (1) You invest $750 every 6 months for 10 years at 8% compounded semi-annually, what is the value after 10 years? (2) I have a multi-part question stating that you have one stock returning X%, one returning Y%, and one returning Z% with the question being what is the expected return of your portfolio? Would I add all of the % together and get the average? (3) There is a 20% chance we will get a 16% return, a 30% chance we get a 14% return, a 40% chance of getting a 12% return, and a 10% chance of an 8% return. What is the expected rate of return? If you provide an answer, great, but could you please tell me how you got it? I need to be able to do it for my final and I need to be able to understand what I am doing. My book is just rather confusing. Thank you! I answered the last 2 questions, still have the $750 twice a year compounded semi to answer...but here are a few others throwing me off. (1) Generally, what is the most important financial statement in judging the economic well-being of a firm? (2) Accounts Receivable turnover of 8, annual credit sales of $362,000, what is the average collection period (360-day year)? (3) How do I figure the "Net Profit Margin" , "Total Asset Turnover", and "Return on Equity" if I have numbers for: sales, net income, total assets, and total debt? (4) EVA attempts to measure economic profit. Economic profit would be considered earnings growth, profit margins, or return on equity.
Public Comments
- .This site might help,it can be pretty elementary but has some good examples and definitions along with theory. http://www.sosmath.com Hope this helps and good luck.
