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Money Management Midterm-1 - Essay Example
Author : bstroman
Finance & Accounting
Pages 6 (1506 words)
Money and Management Midterm By [Name of Student] Finance and Accounting [Name of University] [Date] Contents Contents 1 PART I – Pension 4 Lockheed Martin Corporation 5 Background information about the company 5 Financial Ratios of Lockheed Martin 5 Earnings per Share 5 Price Earnings Ratio 6 Price per Book 6 Price per Sales 6 Return on Equity 7 Payout Ratio 7 Price per Cash Flow 7 Dividend Yield 7 Altera Corporation 8 Background information about the Company 8 Financial Ratios of Altera Corporations 8 Earnings per Share 8 Price Earnings Ratio 8 Price per Book 9 Price per Sales 9 Return on Equity 9 Payout Ratio 9 Price per Cash Flow 9 Dividend Yield 10 Conclusion 10 List of References 11 P…
It is imperative to note that, the insurance companies are obliged to make regular and lifelong payments until the holder dies (Brealey & Myers, 1997). Consider the formula of calculating life annuity returns Payout= P*R*(1+R) exponent N/ (1+R) Whereby P is the principal, R interest rate and payout refers to the periodic payment. Take a percentage interest of 6% and use the annuity calculator for easy calculation. For a single life annuity, fixed amount to be paid is 3,333 per month. This adds up to EUR 39,996 annually. Therefore, annual periodic payment would be: A = EUR 39,996 Now I believe that I would need more money than EUR 39,996 annually. There would be different factors that would reduce the value of EUR 39,996 at that time like inflation. Therefore, when I retire and I think EUR 45,000 should be a valuable amount that I would need every year to spend my life happily. ...