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ASAP PLEASE Context Your company has $45,000 in cash to make an investment. You have asked the company's financial director to structure at least 4
ASAP PLEASE
Context "Your company has $45,000 in cash to make an investment. You have asked the company's financial director to structure at least 4 investrment opportunities to make a decision about it. The director has told you that the possibilities are the best." shown below. With this data, what is the optimal investment portfolio for the company? Remember that the company's IOR is 12% as shown in all investments. (The structuring of each investment has an individual rating and portfolio selection as well, each of 0.58333 ). Remember that the structuring of your portfolio (after calculating the cash flows of each investment) must be done in Excel using the solver tool. Portfolio that does not have solver calculations will be classified as not delivered" Option 1 Invest in a share in a company that has a value of 16.5 thousand dollars. The company will begin to distribute dividends from year 3 for a value of $2,700 per participant. These dividends are assumed to have growth as shown in the following table. The project ends in year 10 and you calculate your company's opportunity interest rate at 12%. Option 2 Invest in a zero coupon bond from the European Central Bank. This bond was issued in dollars for a face value of 10,000 . You do not know the price at which you could buy the bond, but you know that the market rate is 12%. The maturity period of this bond is 10 years. Option 3 Invest in a construction project for an office tower, the value of the investment is 12.5 thousand dollars and it will rent a biennial effective 14% (every two years) with annual capitalizations for 10 years. The redemption value (sale) of this investment in year 10 will be 17.5 thousand dollars and the opportunity interest rate in your company to calculate your NPV is 12%. Option 4 Ecopetrol SA has issued bonds for a total face value of 10 milion dollars. The total issue was 500 bonds and you want to buy one of these bonds that have an annual coupon rate of 9%. The market rate for this bond is 12%, and you do not know what price these bonds are currently. selling for. The maturity period of the bonds is 10 years. Option 5 Invest in a CDT whose price is 5,000 dollars and which pays a monthly nominal rate of 0.5% (however, the capitalization of the bond is annual). The duration of this bond is 10 years and it pays all the investment money when the CDT matures. Remember that the opportunity interest rate of your company is 12% Context "Your company has $45,000 in cash to make an investment. You have asked the company's financial director to structure at least 4 investrment opportunities to make a decision about it. The director has told you that the possibilities are the best." shown below. With this data, what is the optimal investment portfolio for the company? Remember that the company's IOR is 12% as shown in all investments. (The structuring of each investment has an individual rating and portfolio selection as well, each of 0.58333 ). Remember that the structuring of your portfolio (after calculating the cash flows of each investment) must be done in Excel using the solver tool. Portfolio that does not have solver calculations will be classified as not delivered" Option 1 Invest in a share in a company that has a value of 16.5 thousand dollars. The company will begin to distribute dividends from year 3 for a value of $2,700 per participant. These dividends are assumed to have growth as shown in the following table. The project ends in year 10 and you calculate your company's opportunity interest rate at 12%. Option 2 Invest in a zero coupon bond from the European Central Bank. This bond was issued in dollars for a face value of 10,000 . You do not know the price at which you could buy the bond, but you know that the market rate is 12%. The maturity period of this bond is 10 years. Option 3 Invest in a construction project for an office tower, the value of the investment is 12.5 thousand dollars and it will rent a biennial effective 14% (every two years) with annual capitalizations for 10 years. The redemption value (sale) of this investment in year 10 will be 17.5 thousand dollars and the opportunity interest rate in your company to calculate your NPV is 12%. Option 4 Ecopetrol SA has issued bonds for a total face value of 10 milion dollars. The total issue was 500 bonds and you want to buy one of these bonds that have an annual coupon rate of 9%. The market rate for this bond is 12%, and you do not know what price these bonds are currently. selling for. The maturity period of the bonds is 10 years. Option 5 Invest in a CDT whose price is 5,000 dollars and which pays a monthly nominal rate of 0.5% (however, the capitalization of the bond is annual). The duration of this bond is 10 years and it pays all the investment money when the CDT matures. Remember that the opportunity interest rate of your company is 12% Step by Step Solution
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