Answer:
the money you will invest per year to fund 70% of your salary after retirement is given by,
X 70%=280 700.
Explanation:
you will need to save 280 700 in order to pay yourself 70% of 401 000.
since percentage is by 100, you will divide the salary by 100 and multiply the result by the new percentage.
Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) =
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
Answer:
visual communication
Explanation:
Communication can be defined as a process which typically involves the transfer of information from one person (sender) to another (recipient), through the use of semiotics, symbols and signs that are mutually understood by both parties.
Generally, there are four (4) main types of communication and these includes;
I. Verbal (oral) communication.
II. Non-verbal communication.
III. Written communication.
IV. Visual communication.
Visual communication can be defined as the use of visual elements and symbols such as charts, graphs, and signs to convey ideas and information that effectively creates meaning to the recipient.
In conclusion, visual communication is strictly based on vision or sight.
Answer:
the internal rate of return is 6%
Explanation:
The computation of the internal rate of return is shown below;
Given that
Years Cash flows
0 -$20,790
1 $6,000
2 $6,000
3 $6,000
4 $6,000
Now apply the following formula i.e..
= IRR()
After applying the above formula, the internal rate of return is 6%