Answer: Roth IRA
Explanation:
A Roth IRA allows a person to contribute income that is already taxed to their retirement account. As the income is already taxed, when it is distributed in retirement, it would be tax free.
People tend to choose this if they feel like taxes would increase in future as opposed to the present and so would like to take advantage and save on taxes.
There are however, restrictions on the amount that can be contributed however and people who earn more than a certain amount per year do not qualify for this retirement plan.
Answer:
The answer is b) The use of a cost benefit analysis for alternative actions is undertaken.
Explanation:
The concept or idea behind the utilitarian model of ethics is that what is right should be separated from what is wrong by using the outcome of action as basis of judgement. The aim of the act should be the greatest good for the greatest number of people. In options A and C, the outcome benefits only a specified or particular group of people whereas option B, the use of cost-benefit analysis, which is one of the main areas that applies utilitarianism is businesses, best suits this ideology.
Answer:
There's a list of important question to be do done:
1. A complete list of credit qualification of each member of the mortgage backed security (MBS) is needed: it is very useful because allow you to know the quality of the product, as in 2008 crisis the issuers of this kind of products put bad credit rate mortgages with good rate.
2. Who is the issuer of the MBS: it helps to determine the quality of the product, because studying the balance sheet is possible to know how healthy the company is
3. Is also important to know the issuer of the mortgage, it means Wich commercial Bank is issuing this kind of products
4-is the product been traded in stock exchange or it OTC ( over the counter). If it is traded OTC is lesser regulated than any stock exchange
Answer: When the Age Discrimination in Employment Act is being applied, the substantially younger test generally says that the younger employee must be at least ten years younger than the terminated employee claiming discrimination.
Explanation: The Federal Government has set an age limit on how far apart the age needs to be to claim there is discrimination happening. They have also set an age limit to claim that an individual is being discriminated by their age and that is 40 years old.
Answer:
$31.82
Explanation:
market price $50
expected rate of return /Re) = 14%
Div = $50 x 14% = $7
risk free rate (Rf) = 6%
market premium (Rm - Rf) = 8.5%
beta = ?
14% = 6% + (beta x 8.5%)
beta x 8.5% = 14% - 6% = 8%
beta = 8% / 8.5 = 0.941
if beta doubles to 1.882, then Re will be:
Re = 6% + (1.882 x 8.5%) = 22%
new market price of the stocks = $7 / 22% = $31.818 = $31.82
