Task:
See attached file
3000 words max (excluding annexes and references)
Pedagogical aim and expectations:
To show how you can estimate the best way to use your capital once you have
stopped working, and to use data provided by Morningstar www.morningstar.com to
help you decide about equity investing in particular companies. Finally, to
show basic understanding of cash flows in bond calculations. Calculations
should be used eg. NPV. Future Value and IRR.

Your pension

Suppose you have reached
retirement. You have saved a good

mount of money, say EUR 500,000,
but, if you wish to take a

currency and and an amount more
realistic for your country,

please do so.

You are now to make a comparison
between two approaches to

using your wealth to see you
through retirement:

A. Establish what yearly pension
a life insurance company is

prepared to pay you for the rest
of your life.

B. You manage your wealth
yourself. Set an amount you want to

withdraw each year, and estimate
what percent you can earn on

the outstanding balance.

All you numbers should be
realistic for you and your country

and your situation.

Do stick to my simplifying
conventions about the table

reflecting end-year movements
and balances, and have a year

zero.

Share Analysis

Choose two companies from
“Morningstar”. One should be a

company you might like to invest
in and the other one you would

avoid.

Using the data on the
Morningstar database available in the

library, explain the
signification of the various financial

ratios related to the two
companies you have chosen (e.g.

Price/Earnings, Price/Book,
Price/Sales, Price/Cash Flow,

Dividend %).

Prepare a brief description of
each company and explain why

one attracts you the other not.

3000 words

Attachments:

Task.docx