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s2008m [1.1K]
3 years ago
14

Meredith saves $575 a month and her gross income is $6,500 each month. Meredith’s liquid assets are equal to $4,000 and her curr

ent liabilities are equal to $1,200. Her net worth is $65,000. What is Meredith’s savings ratio?
Business
1 answer:
NeTakaya3 years ago
6 0

Answer:

$8.85%

Explanation:

Savings refers to the amount of income that has been spent but has. The saving ratio measures the propensity of individuals to save. The savings ratio is derived by dividing individuals or household savings with disposable income.

Disposable income refers to the income after tax deductions.

Saving ratio =savings/ disposable income x 100

For Merideth: monthly savings = $575

gross income: $6500

No information on tax is given

Saving ratio = $575/$0.6500 x 100

=$0.0884 X 100

=$8.8461%

=$8.85%

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B. reduced the price elasticity of demand for its products

Explanation:

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3 years ago
When building a new residential development or mall, a national real estate organization typically does not remove many trees, b
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Answer:

The answer is: Corporate environmental responsibility

Explanation:

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In this specific question, the real estate organization is reducing its negative impact on the land by preserving trees.

6 0
3 years ago
The next dividend payment by ZYX, Inc., will be $2.95 per share. The dividends are anticipated to maintain a 4 percent growth ra
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Answer:

9.09%

Explanation:

The required return of  ZYX, Inc shall be determined using the following mentioned formula:

r=[d(1+g)/MV]+g

In the given question

r=required rate of return of ZYX, Inc=?

d(1+g)=next dividend payment to be made by the ZYX, Inc=$2.95

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g=growth rate of dividend=4%

r=required rate of return=[$2.95/$58]+4%

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6 0
3 years ago
Cost of Debt KatyDid Clothes has a $150 million (face value) 30-year bond issue selling for 104 percent of par that carries a co
Ivahew [28]

Answer:

the annual pre-tax cost of debt is 10.56%

Explanation:

the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.

We solve for the rate which makes the coupon and maturity 104

with excel or a financial calculator

PV of the coupon payment

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 5.500 (100 x 11%/2)

time 60 (30 years x 2 payment per year)

rate <em>0.052787474</em>

5.5 \times \frac{1-(1+0.0527874736258532)^{-60} }{0.0527874736258532} = PV\\

PV $99.4338

PV of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   100.00

time   60.00

rate  <em>0.052787474</em>

\frac{100}{(1 + 0.0527874736258532)^{60} } = PV  

PV   4.57

<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>

PV coupon $99.4338 + PV maturity  $4.5662 = $104.0000

The rate is generated using goal seek or wiht a financial calculator.

This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:

0.052787474 x 2 = 0.105574947

The cost of debt for the firm is 10.56%

5 0
3 years ago
Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments
Sonbull [250]

Answer:

B. 4 years

Explanation:

As per the certain life income period, the guaranteed payments for the recipient lifetime or the specified time duration whichever is more.

Now if the recipient dies before the certain period ended, so the payments would be continued to the other beneficiary unless there is an end for the certain period

So, in the given situation, the payments would be received for

= 10 years - 6 years

= 4 years

Hence, the correct option is B. 4 years

6 0
3 years ago
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