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Anit [1.1K]
2 years ago
7

Mr. Fitzgerald is selling his home to permanently move into a retirement facility near his daughter in a neighboring state befor

e the Annual Election Period. He has a stand-alone prescription drug plan and has learned it is not available where he is moving. He doesn’t know what he should do. What can you tell him?
Business
1 answer:
AysviL [449]2 years ago
6 0

"Mr. Fitzgerald is selling his home to permanently move into a retirement" He must be automatically dropped from the plan because he is relocating outside of the service region. He will be able to choose a new plan during a special election term. This is further explained below.

<h3>What is prescription drug plan?</h3>

Generally, Prescription drug plans (PDPs) are another name for Medicare Part D. These policies are available on their own from private insurance providers.

In conclusion, He must be automatically dropped from the plan because he is relocating outside of the service region. He will be able to choose a new plan during a special election term.

Read more about prescription drug plan

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The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 13 ​billion, respectively.
Alisiya [41]

Answer: 9.48%

Explanation:

Given Data

Debts ;

$7 billion

$2 billion

$13 billion

Beta of Fords stock = Beta = 1.50

Market risk premium = Rp = 8.0%

Risk free rate of interest = Rf = 4.0%

Equity rate = 1.7

Market risk rate = 0.8

Risk free rate = 0.03

Therefore;

Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium

= 0.03 + (1.7 × 0.8)

= 0.166

Preferred Stock Cost ( PSC)= Dividend ÷ stock price

= 4 ÷ 30

= 0.1333

Total debt = 13 + 6 + 2 = 21 billion

D% = 13 billion ÷ 21 billion

      = 0.619

E% = 6 billion ÷ 21 billion

     = 0.286

P% = 2 billion ÷ 21 billion

     = 0.095

RD = debt capital at 8% maturity rate

Tc= 30%

Rwac =(w/ preferred stock)

= Re × E% + PSC × P% + Rd ( 1- Tc) D%

Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)

= 0.094803 * 100

= 9.48%

At 30% tax rate Ford weighted average cost is 9.48%

4 0
3 years ago
What is the world's most expensive drink?
vivado [14]
Tequila Ley, at $ 3,500,000
3 0
4 years ago
Define indicators of development what are the major indicators of development explained?​
VARVARA [1.3K]

Answer:

The extent to which a country has developed may be assessed by considering a range of narrow and broad indicators, including per capita income, life expectancy, education, and the extent of poverty.

Explanation:

thats

indicators of development

3 0
3 years ago
Whitley recently started her own tutoring firm for high school students. To help finance her new business, which had a very limi
tamaranim1 [39]

Answer: Junk bonds

Explanation:

Junk bonds are a high-yielding high-risk security, that are issued by a company which is seeking to raise capital quickly to finance a takeover.

Junk bonds represent bonds that are issued by companies that are financially struggling and possess a high risk of not paying the interest or repaying the principal to investors. Junk bonds are a good investment for the investors who need the higher return and those that can also afford the higher risk.

8 0
3 years ago
Read 2 more answers
A manufacturing company reports the following items: Finished goods inventory beginning balance: $1,000; Finish goods inventory
Nina [5.8K]

Answer:

The cost of goods sold is $4,800

Explanation:

Given,

Beginning Inventory = $1,000

Ending Inventory = $1,200

Cost of goods manufactured = $5,000

Cost of goods sold = Beginning Inventory + Cost of goods manufactured - Ending Inventory.

Cost of goods sold = $1,000 + $5,000 - $1,200

Cost of goods sold = $4,800

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3 years ago
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