Finance Help

Part (A) (60 marks) Question 1 (10 marks) Can our goal of maximizing the value of the shares conflict with other goals such as avoiding unethical or illegal behaviour? In particular, do you think issues like customer and employee safety, the environment, and the general good of society fit into this framework, or are they essentially ignored? Support your views with specific examples. Question 2 (10 marks) As an investor, do you think some managers are paid too much? Do their rewards come at your expense? Support your argument with relevant examples. Question 3 (10 marks) You wish to deposit $250,000 for one year and have had the following quotes from three different financial institutions. For each quote state the interest that would be earned and the effective annual interest rate. i. ii. iii. i. ii. 8% per annum, effective 2% per quarter, effective 8% per annum, compounded monthly you made four payments of $500 into an account every three months starting in three months' time, and you have $2,091.81 in your account in one years' time? how would your answer in (i) change if the first payment was made today and all other factors remain constant?

What is the effective annual interest rate if:

Question 4 (10 marks) Mary is 40 years old today and plans to work until her 65th birthday and then retire, anticipating that she will need sufficient savings to support her until she is 85 years old. (The average life expectance of females in Australia is 81.) Mary believes she will need an annual income of $45,000 during retirement to maintain her life style. She currently earns $54,000 and her employer contributes 9% pa to a superfund whose long term earning rate is 5.4%. On retirement Mary intends to leave her investment in the superfund and draw funds as required. How much will Mary need in the fund on her 65th birthday, given annual withdrawals of $45,000 (20 withdrawals) the first on her 65th birthday, such that there is nothing left in the fund on her 85th...