Week 5 Bus 650

Satisfactory Essays
Topics: Mutual fund
Running head: Week Five Assignment

Week Five Managerial Finance
Jason Campbell
Wayne Hollman
BUS 650
December 17, 2012

Complete Chapter 13 Closing Case at the end of the chapter and submit answers to your instructor.
YOUR 401(K) ACCOUNT AT EAST COAST YACHTS
You have been at your job with East Coast Yachts for a week now and have decided you need to sign up for the company’s 401(k) plan. Even after your discussion with Sarah Brown, the Bledsoe Financial Services representative, you are still unsure as to which investment option you should choose. Recall that the options available to you are stock in East Coast Yachts, the Bledsoe S&P 500 Index Fund, the Bledsoe Small-Cap Fund, the Bledsoe Large-Company Stock Fund, the Bledsoe Bond Fund, and the Bledsoe Money Market Fund. You have decided that you should invest in a diversified portfolio, with 70 percent of your investment in equity, 25 percent in bonds, and 5 percent in the money market fund. You have also decided to focus your equity investment on large-cap stocks, but you are debating whether to select the S&P 500 Index Fund or the Large-Company Stock Fund.
In thinking it over, you understand the basic difference in the two funds. One is a purely passive fund that replicates a widely followed large-cap index, the S&P 500, and has low fees. The other is actively managed with the intention that the skill of the portfolio manager will result in improved performance relative to an index. Fees are higher in the latter fund. You’re just not certain on which way to go, so you ask Dan Ervin, who works in the company’s finance area, for advice.
After discussing your concerns, Dan gives you some information comparing the performance of equity mutual funds and the Vanguard 500 Index Fund. The Vanguard 500 is the world’s largest equity index mutual fund. It replicates the S&P 500, and its return is only negligibly different from the S&P 500. Fees are very low. As a result, the Vanguard

You May Also Find These Documents Helpful

  • Satisfactory Essays

    BUS 650 Week 5 Assignment

    • 516 Words
    • 3 Pages

    This work of BUS 650 Week 5 Assignment includes: Closing Case: Ch 13 Complete Chapter 13 Closing Case at the end of the chapter and submit answers to your instructor. Deadline: ( ), Business - Finance "Corporate Valuation and Financial Planning" Please respond to the following: Suppose a company’s return on invested capital is less than its weighted average cost of capital (WACC). Speculate on what would happen to the value of operations if the sales growth rate increases…

    • 516 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Bus 650 Week 4

    • 521 Words
    • 3 Pages

    STEPHENSON REAL ESTATE RECAPITALIZATION Francisco Morales BUS 650 Dr. Hollman 12 / 17 /12 1. If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. In order to maximize the total market value the company should issue debt to finance the land purchase. Using debt will allow the company to create a tax shield which will decrease taxes and increase the overall value. The tax shield will be created…

    • 521 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Week 2 Bus 650

    • 1713 Words
    • 7 Pages

    Bunyan Lumber LLC Clear-cutting is a controversial method of forest management. To obtain the necessary permits, Bunyan Lumber has agreed to contribute to a conservation fund every time it harvests the lumber. If the company harvested the forest today, the required contribution would be $300,000. The company has agreed that the required contribution will grow by 3.2 percent per year. When should the company harvest the forest? The options that are available to harvest are years 40, 45, 50…

    • 1713 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    BUS 650 Week 4 DQs

    • 539 Words
    • 3 Pages

    this paperwork of BUS 650 Week 4 Discussion Questions you will find the answers on the next questions: DQ 1 Observed Capital Structure In at least 200 words, fully answer Chapter 15 Concept Question 7 at the end of the chapter. Also, does this information contradict or support the MM proposition? Be sure to include material from both chapter 14 and 15 in presenting your answer. Respond to at least two of your fellow students Deadline: ( ), Business - Finance Week 3 Discussion 1…

    • 539 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Bus 650

    • 2110 Words
    • 9 Pages

    play. If he is married whether they have children or not, this can affect Ben’s decision to return to school because of having to support a spouse or child will put a financial burden on his expenses. Considering that Ben has already worked for about 5 years since he graduated from college, he already has the job experiences that MBA programs usually require their candidates within their respective field. Lastly, his willingness to continue his education comes into play. If Ben is willing and ready…

    • 2110 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    BUS 650 Entire Course

    • 441 Words
    • 3 Pages

    This work of BUS 650 Entire Course consists of: BUS 650 Final.doc BUS 650 Week 1 assignment.doc BUS 650 Week 1 dqs.doc BUS 650 Week 2 assignment.doc BUS 650 Week 2 dqs.doc BUS 650 Week 3 assignment.doc BUS 650 Week 3 dqs.doc BUS 650 Week 4 assignment.doc BUS 650 Week 4 dqs.doc BUS 650 Week 5 assignment.doc BUS 650 Week 5 dqs.doc BUS 650 Week 6 dqs.doc Deadline: ( ), Business - General Business I wanted to know is there a way I can get the…

    • 441 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    BUS 650 Final

    • 625 Words
    • 4 Pages

    This file of BUS 650 Final includes: The paper must identify the main issues in the chosen area, new learning that has occurred, class activities or incidents that facilitated learning and understanding, and specific current and/or future applications and relevance to the workplace. The emphasis of the paper should be on application of new learning. Business - General Business Focus of the Final Paper Evaluation of Corporate Performance The Final Project will involve applying…

    • 625 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Bus 650 Week 1 Assignment

    • 974 Words
    • 4 Pages

    MBA Decision Quent Mikeal BUS650: Managerial Finance Instructor: Rick Kwan February 22, 2013 MBA Decision 1. Age is obviously an important factor. The younger an individual is, the more time there is for the (hopefully) increased salary to offset the cost of the decision to return to school for a MBA. The cost includes both the explicit costs such as tuition, as well…

    • 974 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Bus 640 Week 5

    • 737 Words
    • 3 Pages

    Joe Chatman Ashford University BUS 640 Managerial Economics Dr. David Brownfield January 14, 2013 Chapter 11, Applied Problem, 8 a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid…

    • 737 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Bus 630 Week 5

    • 304 Words
    • 2 Pages

    FedEx Corporation Complete the following exercise (Research and Application 11-30) and submit to your instructor. The questions in this exercise are based on FedEx Corporation. To answer the questions you will need to download FedEx’s Form 10-K for the fiscal year ended May 31, 2005 (file date July 14, 2005). You do not need to print this document to answer the questions. Required: • What is FedEx’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy…

    • 304 Words
    • 2 Pages
    Good Essays