It is True, In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit.
Who bears the chance in defined benefits plan?
defined benefits plan also are known as pension plans. Employers sponsor defined benefit plans and promise the plan's investments will provide you with a specified monthly gain at retirement. The employer bears the funding dangers.
What's a defined benefits plan?
An organization-subsidized retirement plan wherein employee benefits are taken care of out based on a system the use of factors which includes income history and length of employment.
What's the risk of defined benefits plan?
Word that pension danger arises handiest with defined benefits plan. A defined-advantage 401-k plan promises to pay a particular (defined) gain to retired employees. to fulfill this obligation, the organization ought to invest wisely so that it has the finances to pay the promised advantages.
Who benefits most from a defined benefits plan?
More youthful personnel have longer for the cash to grow. contributions may be deductible depending on income limits. Contributions aren't deductible, they may be made with after tax dollars and can keep past seventy two if nonetheless running.
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Answer:
7.83%
Explanation:
This is calculated by using the Gordon growth model (GGM) formula as follows: P = d / (r - g) ……………………………………… (1)
Where;
P = market price of the stock = $24.09
d = next year annual dividend = $1.26 r = cost of equity = ?
g = dividend growth rate = 2.6%, or 0.026
Substituting the values into equation and solve for r, we have:
24.09 = 1.26 / (r - 0.026)
24.09 (r - 0.026) = 1.26
24.09r - 0.62634 = 1.26
24.09r = 1.26 + 0.62634
24.09r = 1.88634
r = 1.88634 / 24.09
r = 0.0783038605230386, or 7.83038605230386%
Rounding to 2 decimal places. we have:
r = 7.83%
Therefore, the correct option is 7.83 percent.
Based on the process that Lemony Lemonade uses to make lemonade, the equivalent units for conversion costs is 1,600 units.
<h3>What equivalent units are for conversion costs?</h3>
This can be found as:
= Number of units that are WIP x Percentage of completion
Solving gives:
= 3,200 x 50%
= 1,600 units
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Answer:
a.The efficiency of the WiFi system will depend upon the usage and the speed of internet provided by the ISP (Internet Service Provider). Keeping in mind that the town have 1,000 households the network to choose will need to be fast and reliable also each household should be allowed to download a certain amount of DATA via internet so that the each household can get benefit from the WiFi System.
b. If each household is willing to pay $50 per year the contribution received will be $50×1,000 = $50,000. So the cost of WiFi system will be recovered.
c. If the town keeps tracks of the contributions and ask the household to contribute at least $20 per year so yes the total cost of WiFi system will be recovered. $20× 1,000= $20,000
Explanation:
