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stiks02 [169]
2 years ago
13

Jon, age 48, earns $65,000 per year from his employer. Jon saves $15,000 per year for retirement and pays $12,000 per year for h

is home mortgage. Given this information and considering that Jon will have eliminated his mortgage debt before retirement, what is Jon's expected wage replacement ratio during retirement?
Business
1 answer:
nikitadnepr [17]2 years ago
5 0

Answer:

50.81%

Explanation:

Wage replacement ratio is used to determine how much money an individual will need in retirement, tool for estimating retirement income needs.

Figures given:

Salary:$65,000 per year

Savings: $15000

Mortgage:$12,000

Solution

Salary: $65,000 ---⇒100%

Saving:$15000   --⇒23.8%

Tax:$4972.50     --⇒7.65%

Mortgage: $12,000 --⇒18.476%

                 $33027.50 = 50.81%

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The answer is future-value
8 0
3 years ago
Corporate dividends represent: Multiple Choice tax-free income for the recipient because they are distributions of pretax income
olga nikolaevna [1]

e. Corporate dividends represent aftertax income from the corporation which becomes taxable income for the recipient.

More about dividends:

Dividend refers to a distribution of a corporation's profits to its shareholders and to use the term distribution to refer to other payments to shareholders, such as payments made when the corporation is liquidated.

Types:

  • Cash the most typical and probably the most appreciated type of dividend is cash, which is typically distributed in the form of a check payable to the shareholder.
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6 0
1 year ago
You are the founder of Shadow Skateboards, and you are considering methods of gaining and sustaining a competitive advantage. Wh
bogdanovich [222]

Answer:

The correct option is A,devoting resources to researching and developing new products that will be more durable than competitors'

Explanation:

Creating sustainable advantage means that the company is able to do something very difficult for competitors to copy.

Sustainable advantage is not about cost reductions,is about a perceived  value added to products or services not seen anywhere else.

If customers upload their designs for the company to produce, it does not necessarily mean the product is fit for purpose, as the company does not have full control over it.

7 0
3 years ago
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and an 8% coupon, semiannua
Reika [66]

Answer:

Firms after tax of debt is 6.87%

Explanation:

Firm's after-tax cost of debt is calculated using the RATE function as follow:-

=RATE(nper,pmt,pv,fv)*(1-tax rate)

=(RATE(20*2,40,-894.87,1000)*2)*(1-25%)

=6.87%

7 0
2 years ago
Read 2 more answers
A company purchased $3,200 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $900 worth of merchandise. On
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Explanation:

The correct journal entry is as follows

Accounts payable A/c Dr $2,300      

     To Cash A/c   $2,254            

     To Merchandise Inventory A/c $46

(Being due amount is paid and the remaining balance is credited to the cash account)

It is computed below:

For account payable

= $3,200 - $900

= $2,300

For Merchandise inventory

=  ($3,200 - $900) × 2%  

= $46

4 0
2 years ago
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