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jok3333 [9.3K]
1 year ago
13

ACME Company is considering starting a retirement plan for its employees. One option ACME is considering is a profit-sharing pla

n. All of the following are advantages of this type of retirement plan EXCEPT
A) The employer's cost is not affected by the age and the number of employees.
B) Profit sharing plans provide an incentive for employees to work harder and more efficiently.
C) The 10 percent penalty tax does not apply to distributions prior to age 59.5.
D) ACME enjoys greater flexibility in employer contributions.
Business
1 answer:
saw5 [17]1 year ago
6 0

All of the following are advantages of this type of retirement plan EXCEPT C) The 10 percent penalty tax does not apply to distributions prior to age 59.5.

<h3>Which of the following is a major benefit of an employer-sponsored retirement plan?</h3>

The plans lower your taxable income, which means that you will pay less in taxes for the year. They also grow deferred, which means that any profits growth is tax-free until it is withdrawn, and you can receive "free money" through employer matching contributions.

A profit sharing or stock bonus plan is a type of defined contribution plan where the employer or the plan specifies how much money will be donated each year (out of profits or otherwise).

To know more about retirement plan, refer:

brainly.com/question/29675409

#SPJ4

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The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest
Margaret [11]

Answer:

The correct answer is letter "B": interest payments that vary by the yield to maturity each year.

Explanation:

Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.

3 0
3 years ago
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Co
ale4655 [162]

Answer:

(a) the earnings per share = $3

(b) the price-earnings ratio = 8x

(c) the dividends per share = $0.25

(d) the dividend yield = 1.04%

Explanation:

Common Stock Outstanding = 5,250,000/25 = 210,000 shares

Preferred Stock Outstanding = 6,000,000/200 = 30,000 shares

Preferred Stock Dividend per share = $4

(a) Earnings Per Share

EPS = <u>Net Income - Preferred Dividend</u>

            Common Stock Outstanding

EPS = <u>750,000 - (30,000 * 4)</u>

                  210,000

EPS = <u>630,000</u>

           210,000

EPS = $3

(b) Price-Earnings Ratio    

Market Price = $24

EPS = $3

P/E ratio = <u>Market Price</u>

                      EPS

P/E ratio = 24/3

P/E ratio = 8x

(c) Dividends Per Share

DPS = <u>               Total Dividends          </u>

             Common Stock Outstanding

DPS = 52,500/210,000

DPS = $0.25

(d) Dividend Yield

DY = <u>Dividend Per Share</u>

                   Price

DY = 0.25/24

DY = 1.04%

6 0
3 years ago
Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Softa [21]

Answer:

B. False

Explanation:

Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

6 0
3 years ago
Where can aspiring entrepreneurs go to get their questions answered?
Nataliya [291]
Aspiring entrepreneurs can go to the internet, experienced entrepreneurs, Chambers of Commerce, Small Businessn Administration (SBA), college/university, or the community to get their questions answered. Hope this helps.
5 0
3 years ago
Between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs.
kondor19780726 [428]

Answer: True

Explanation:

Labor productivity has to do with the amount of products and services which are produce at a particular time by the workers.

It should be noted that between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. This brought about increase in the available goods and services in the country.

3 0
3 years ago
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