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    How Much Are You Worth - Student Equity Research

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    See attached files.

    Clarification: Sample spreadsheet with 3 tabs is attached. Typical income, assets, and expenses for a Grad school student or graduate are to be used to complete this spreadsheet. The highlighted figures in yellow are examples.

    I am requesting assistance in completing the spreadsheets. I will summarize the findings and prepare a report.

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    Solution Preview

    I begin by listing all the assumptions,

    -The balance sheet and income statement contain made up financial data

    -I choose 4% of long term revenue growth rate and 2% for long term earning growth rate. Why these numbers? In Canada (which is where I am), generally employers give a 3-4% raise every year. Since the main income is salary (we assume that the graduate student does not operate a business), his revenue growth is roughly 4%. The average inflation rate in Canada is 2% (slightly higher in US, about 3%), so the expenses will grow at around 2%/year. This means his earning is growing at about 2%/year (= 4% income growth - 2% expenses growth).

    -Historically, 10 Yr bond yield is around 5%/year, so we use this as the ...

    Solution Summary

    How Much Are You Worth - Student Equity Research