Answer:
a. Taxpayers in the scenario:
There are three (3) taxpayers and these are:
- Mr. Josh Kenny
- JK Services
- JK Realty
b. Governments with jurisdiction:
- Mr. Josh Kenny falls under the State of Vermont where he is a resident.
- JK Services falls under the State of Vermont where it is incorporated and operates.
- JK Realty falls under the City of Boston where it is operates.
Answer:
Cost of equity = 10.7%
Explanation:
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
<em>The model can me modified to determined the cost of equity as follows:</em>
Cost of equity = D/P + g
d- dividend payable next period, p- price of stock ,, - g- growth rate
D- 4.5%, p- $2.48 , g -4.5%
Cost of equity = (2.48 /39.85) + 0.045
= 10.7%
Answer:
The answer is $138.92
Explanation:
Solution
Given that:
Daryl today's Age = 30
The Retirement Age = 64
The Total Monthly Deposits = ( 64 - 30 ) * 12 = 408
Now,
In case of 12% Compounded Monthly , Interest Rate per month = ( 12% / 12 ) = 1%
Then,
The Effective Interest Rate per year = ( 1 + 0.12/12 )12 - 1 = 1.1268 - 1 = 0.1268 = 12.68%
So,
The Present value of Annual 25 Years withdrawal of $100,000 at time of Retirement = $100,000 * PVAF ( 12.68% , 25 )
= $100,000 * 7.4864
= $748,642.20
The Present Value of Money for nephew at time of Retirement = $1,000,000 * PVF ( 12.68% , 25 )
= $1,000,000 * 0.050535
= $50,534.52
Now
The Present Value of total Amount Required at time of Retirement = $748,642.20 + $50,534.52
= $799,176.70
Now
The monthly deposit be X
Which is,
= X * FVAF ( 408 , 1% ) = $799,176.70
= X * 5752.85 = $799,176.70
X = $138.918
Therefore, Monthly Deposit for his retirement plan is = $138.92
(800x20)/100 = 160 160 + 800= 960, so yes they will help you bring you within your budget
Answer:
a. 79
Explanation:
Opportunity cost can simply be defined as the alternative forgone. That is, opportunity cost is that good, commodity or service or whatsoever is sacrificed in order to obtain another. In economics, it is known as real cost. Thus in the question above, Jose employes strategy A such that when he prepares for two exams in one evening, the opportunity cost of receiving a 94 point on Economics exam is 79 points on the statistics.
