Category: Finance

Prepare an Investment Policy Statement for Lawrence that suits his needs based on the information provided above.

INVESTMENT POLICY STATEMENT

ASSIGNMENT
Lawrence Thompson, 60 years old recently retired and received a $5M cash payment from his employer as an early retirement incentive. He also obtained $800,000 by exercising his company stock options. Both amounts are net of tax. Thompson is not entitled to a pension; however, his medical expenses are covered by insurance paid for by his former employer. He is in excellent health and has a normal life expectancy.
Thompson has no assets other than the $5.8 million cash referenced above, and he has no debts. Thompson’s living expenses will be $200,000 per month and will rise with inflation. He does not plan to work again.

Prepare an Investment Policy Statement for Lawrence that suits his needs based on the information provided above.

Prepare a spreadsheet outlining the particulars in preparing this statement (you) may use real existing entities to do your asset allocation and for buying and selling of securities).

Provide a word document and excel spreadsheet in accordance with the work done. An example of the spreadsheet is provided.

 How are current financial institutions participating/threatened by the technology? What are their responses?

Future Impact of Digital Currencies on Financial Institutions

Write a 6-8 paper (excluding references and title page) on:

Research blockchain and digital currencies and project the potential impact on financial markets and institutions in the future.

Briefly present a history of the technology, functionality, and how the digital currency markets work today.

How are current financial institutions participating/threatened by the technology? What are their responses?

Review recent global financial events to determine the impact it has had on digital currency prices, specifically Bitcoin, and what the implications are for the future.

Predict the most likely scenario, in your opinion, given what your research has shown you and support with evidence, and site sources.

Do you agree with this perspective? What could be the negative aspects of promoting individual creativity as the highest value?

Paper for admissions to the honors college:

the following topic below and write a clear, coherent argument. Your essay will be evaluated on your ability to write clearly, think logically, provide evidence for your assertions, and use proper grammar. (Maximum 500 words)Some scholars say that the highest value in Western civilization today is promoting the many-sided creativity of each individual, rather than training persons to be highly specialized experts. Do you agree with this perspective? What could be the negative aspects of promoting individual creativity as the highest value?

 Which method is the best evaluation of a capital expenditure: Payback Period or IRR?Many money managers often prefer to smooth dividends providing investors with a predictable return versus releasing the actual amount of excess cashflow. Does this increase or decrease the IRR of the equity investment? What other factors may be considered in the decision of how much to return to investors?

Course work

Which method is the best evaluation of a capital expenditure: Payback Period or IRR? (No right answer – explain your point of view)
Many money managers often prefer to smooth dividends providing investors with a predictable return versus releasing the actual amount of excess cashflow. Does this increase or decrease the IRR of the equity investment? What other factors may be considered in the decision of how much to return to investors?

How much the investor would pay for the bond assuming $1,000 face value and using the last price listed in quotation? Calculate the current yield of the bond assuming that par value of the bond is $1,000

FIN WK 4

For this week discussion you will be using

http://finra-markets.morningstar.com/BondCenter/Default.jsp

The information on bonds can be found on the website http://finra-markets.morningstar.com/BondCenter/Default.jsp.

To find the information on bonds, click on Search in the middle of the screen (under Market Center Bond Guide), under Quick Search type the Issuer Name and the Symbol, and click SHOW RESULTS.

In your initial response you should answer the main question: If you are an investor who is looking for a corporate bond to invest to, are you going to buy a bond that you chose? To answer this question you should complete three steps:

Copy the bond’s quotation from the website.

Describe the main elements of the bond:

Coupon rate

Calculate annual coupon payment (assuming face value $1,000)

What is the frequency of coupon payments of the bond? If the frequency is greater than 1, how much is payment is going to be?
Maturity,

Rating. Explain the meaning of rating.

The last price listed in quotation

How much the investor would pay for the bond assuming $1,000 face value and using the last price listed in quotation?
Calculate the current yield of the bond assuming that par value of the bond is $1,000

How much is the YTM listed in quotations is for the bond? Explain the meaning of YTM.
Is the bond callable or not? If the bond that you chose is callable (non-callable), will it change your decision to buy it?

Another useful website on bond information is https://markets.businessinsider.com/bonds. To find the information on bonds, scroll down the page, type the name of the company in the window under Bond Finder, and click SEARCH.

Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? You should develop a specific recommendation, with supporting rationale to explain your answer.