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3 years ago

Which best describes an investor’s primary goal?

2 answers:

9 0

An investors primary goal is to make money. More specifically, money that is greater than the sum amount initially invested.

Naddika [18.5K]3 years ago

9 0

Answer:

to provide a capital to a businesses

Explanation:

i took the test 2020

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. Which of the following is not a way business markets and consumer markets differ?

Nataliya [291]

The nature of the buying unit is not a way business markets and consumer markets differ

Answer: the nature of the buying unit

Explanation:

Consumer market is basically a market that is Business to Consumer whereas a business market is mainly B2B market.

Most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct mail efforts and trade journals It can be seen that it is due to the market structure and demand. the nature of the buying unit is not a way to differentiate.

6 0

3 years ago

If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is

olasank [31]

Answer:

Because of economies and diseconomies of scale.

Explanation:

Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.

Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.

Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.

Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.

3 0

3 years ago

Dan, and Mike are brothers. They plan to begin savings plans when each is exactly 25. Each brother plans to save $6,000 per year

anzhelika [568]

Answer:

1. How much will Dan have in his traditional IRA account at 67? Follow the proper taxation for this type of retirement account.

A) Amount available to invest after taxes per month?

$500

B) Amount in account at age 67?

$2,813,492

C) Briefly explain the taxation on withdrawals from a Traditional IRA

IRA contributions are made before income taxes are paid, that is why Dan's monthly contributions are higher. The disadvantage is that Dan's plan will be taxed later.

2. How much will Mike have in his Roth IRA at age 67? Follow the proper taxation for this type of retirement account.

A) Amount available to invest after taxes per month?

$375 until 59.5 years old, then $500

B) Amount in account at age 67

$2,072,879

c) Briefly explain the taxation on the withdrawals from a Roth IRA

Roth IRA contributions are made after income taxes are paid, that is why Mike's monthly contributions are lower. The advantage is that Mike's plan will not be taxed later.

3. If both brothers are expected to be taxed at a 20% tax rate in retirement, which retirement plan will have the best after tax results?

In this case, since the tax rate is higher while they are working (25%), than once they retire (20%), the traditional IRA account could make more sense except that since the time span is very long, your account will accumulate a lot of earned interest. The total principal invested into the traditional IRA account is $252,000 and the interest gained is $2,561,492 and that part will be taxed once you start withdrawing money. In order to determine which account would be better, you need to estimate how many years will Dan and Mike live after retiring, the longer they live the best option is the Roth IRA account.

Explanation:

the formula to determine the future value of an annuity is:

FV = P x [(1 + r)ⁿ - 1] / r

Dan's monthly contribution = $500

Mike's monthly contribution = $500 x (1 - 25%) = $375 until age 59.5, then $500

Dan's n = 42 years x 12 months = 504

r = 9% / 12 = 0.75%

Mike's n = 414 for $375 and 90 for $500

Dan's FV = $500 x [(1 + 0.75%)⁵⁰⁴ - 1] / 0.75% = $2,813,492

Mike's FV = $375 x [(1 + 0.75%)⁴¹⁴ - 1] / 0.75% = $1,052,612

then $1,052,612 x (1.09)⁷°⁵ = $2,008,940

Mike's FV = $500 x [(1 + 0.75%)⁹⁰ - 1] / 0.75% = $63,939

total = $2,008,940 + $63,939 = $2,072,879

7 0

3 years ago

Fernandez Company had an accounts receivable balance of $150,000 on December 31, Year 2 and $175,000 on December 31, Year 3.

Mars2501 [29]

Answer:

The amount collected from customers on accounts receivable during year 3 is $535,000.

Explanation:

Cash received from accounts receivable = Opening balance of AR + Credit Sales - Bad debts written off - Closing balance of AR.

The opening balance for year 3 account receivables was 150000.
Credit Sales = 600000
Bad debts = 40000
Closing Balance = 175000

We can solve this question either by making a T account for accounts receivable or using the equation given above.

Cash = 150000 + 600000 - 40000 - 175000 = $535000

4 0

3 years ago

Read 2 more answers

A company that manufactures and sells kitchen scrubbing sponges has significantly lower cost structures than its competition. Th

chubhunter [2.5K]

Answer:

The correct answer is “Pricing below competitors”.

Explanation:

It is given that the organization is operating with a lower cost structure as compared to its competitor and it is also enjoying the economies of scale. Since lower cost structure makes the organization capable to keep the price of its product lower as compared to its competitor. Moreover, the lower price of a commodity will attract new customers. Consequently, its sales volume will increase.

5 0

3 years ago