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Homework answers / question archive / 1)Harte Systems inc a maker of electronic surveillance equipment, is considering selling to a well-known hardware chain the rights to market its home security system
1)Harte Systems inc a maker of electronic surveillance equipment, is considering selling to a well-known hardware chain the rights to market its home security system. the proposed deal calls for the hardware chain to pay Harte $34,000 and 25,000 at the end of years 1 and 2 and to make annual year-end payments of 14,000 in years 3 through 9. a final payment to Harte of $20,000 would be due at the end of year 10.
A. if Harte applies a required rate of return 11% to them, what is the present value of this series of payments?
2)The average daily net transaction accounts of a local bank during the most recent reserve computation period is $341 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $26.20 million and the average daily vault cash corresponding to the maintenance period is $5.8 million A Under the rules effective in 2013, what is the average dally reserve balance required to be held by the bank during the maintenance period? $ million B, is the bank in compliance with the reserve requirements?
3)Maya (22) is a fresh college graduate with $45,000 in student debt. She enjoys the beach, and she would like to take frequent vacations to Hawaii this year. Given her financial situation, which most likely describes the best method of utilizing Maya's resources? 0.00 points out of 0.50 P Flag question 0 Select one: a. Taking a full time seasonal job to save money for trips b. Taking a traditional full time job with an emphasis on vacation time over salary * c. Spending as much time earning in the market as is reasonable Question 11 Incorrect Which client would you expect to have the most pressure on their time? 0.00 points out of 0.50 P Flag question Select one: a. A senior client with a large inheritance and an interest in philanthropy * b. A middle aged client with two small children that's starting a business c. A young client that is unmarried and without children, but has high debt 0 Question 12 Incorrect After identifying and prioritizing goals a financial planner should: 0.00 points out of 0.50 P Flag question Select one: a. Make recommendations to the client based on information gathered including facts and circumstances X b. Analyze the client's current course of action and potential alternative courses of action c. Provide disclosures including a description of material conflicts of interest before continuing work with the client 0 Question 13 A client presents you with the following qualitative goal: "I want to ensure that my children can attend college." Which of the following processes would best help you advise your client? Incorrect 0.00 points out of 0.50 P Flag question Select one: a. Use average college tuition rates to calculate a savings goal for the client to add to their budget. b. Discuss why the client has this particular goal, using the response to tailor a solution, and discuss various scenarios to find which makes the client the most comfortable before creating a savings goal for the client. c. Discuss which specific college the client wants their children to attend and how much they want to cover to calculate a savings goal. X Question 14 What should a financial planner do if they are not provided with enough information to fulfill their scope of engagement with their client? Incorrect 0.00 points out of 0.50 P Flag question Select one: a. Continue working with the client hoping information is eventually provided b. Make assumptions to fill missing information X c. Limit the scope of engagement 0
1) Statement showing present value of cash flow
Year | Cash flow | PVIF @ 11% | PV |
A | B | C =A x B | |
1 | 34000 | 0.9009 | 30630.63 |
2 | 25000 | 0.8116 | 20290.56 |
3 | 14000 | 0.7312 | 10236.68 |
4 | 14000 | 0.6587 | 9222.23 |
5 | 14000 | 0.5935 | 8308.32 |
6 | 14000 | 0.5346 | 7484.97 |
7 | 14000 | 0.4817 | 6743.22 |
8 | 14000 | 0.4339 | 6074.97 |
9 | 14000 | 0.3909 | 5472.95 |
10 | 20000 | 0.3522 | 7043.69 |
Total | 111508.22 |
Thus present value of cash flow = $111508.22
2)
a, | |
average daily transaction amount | $341 million |
average daily vault cash | $5.8 million |
reserve requirments | |
upto $15.2m @0% | 0 |
($110.2m-$15.2 m)*(3%) | 2.85 million |
($341 m-110.2m)*(10%) | 23.08 million |
Total | 25.93 million |
The target average daily reserve balance that the bank needs to maintain will be( 25.93-5.8) | 20.13 million |
b. | |
The target average daily reserve balance that the bank needs to maintain is $20.13 million. This bank currently has $26.20 million average reserve at the Fed. |
|
So the Bank is in Compliance with the reserve requirements |
3)
Question No.10
Taking full time seasonal Job to save money for Trips
Question 11
A middle Aged client with two smal children thats starting a business
Question No. 12
Analyze client's curent course of action and potential alternative course of actions
Question No. 13
Discuss why the client has this particular goal, using the responce tailor a solution, and discuss variouys scenarious to find which makes the client most compfortable before creating a saving goal for the client
Question No. 14
Limit the scope of engagement