Given scenario: YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years. The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years. To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

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Answer 1

Question

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

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Answer 2

Question

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

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Answer 3

Question

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

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Answer 4

Question

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

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Answer 5

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

Answer 6

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

Answer 7

Chapter 17, Problem 17.20EE

Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: Why might a conservative versus risky choice be different at a non-profit organization and a for-profit organization.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 17 - Prob. 17.1QR Ch. 17 - Prob. 17.2QR Ch. 17 - Prob. 17.3QR Ch. 17 - Prob. 17.4QR Ch. 17 - Prob. 17.5QR Ch. 17 - Prob. 17.6QA Ch. 17 - Prob. 17.7QA Ch. 17 - Prob. 17.8QA Ch. 17 - Prob. 17.11A Ch. 17 - Prob. 17.12A

Solution Summary: The author explains the difference between a conservative and risky approach to achieving the 4 million endowment, which is subject to internal and external factors.

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Chapter 17 Solutions