10-19-2009, 02:34 PM
can anyone help me out in the following questions plzz..
1) Mr. Anwar will retire at the age of 60. He expects to live 20 more years and to spend Rs. 55,000 a year during his retirement. How much money does he need to save by age 60 to support this consumption plan? Assume an interest rate of 7 percent.
2)Star Industries has not been growing since past 20 years because of certain legal hazards. It earns Rs. 15 per share per year and pays it all out to stockholders. The stockholders have alternative, equivalentÂ]risk ventures yielding 20 percent per year on average. What is the worth of one share of Star Industries? Assume the
company can keep going indefinitely.
1) Mr. Anwar will retire at the age of 60. He expects to live 20 more years and to spend Rs. 55,000 a year during his retirement. How much money does he need to save by age 60 to support this consumption plan? Assume an interest rate of 7 percent.
2)Star Industries has not been growing since past 20 years because of certain legal hazards. It earns Rs. 15 per share per year and pays it all out to stockholders. The stockholders have alternative, equivalentÂ]risk ventures yielding 20 percent per year on average. What is the worth of one share of Star Industries? Assume the
company can keep going indefinitely.
