Answer:
review your progress, reevaluate, and revise your plan
Explanation:
Based on the information provided within the question it can be said that in this scenario the step that you have completely neglected is to review your progress, reevaluate, and revise your plan. That is because in this scenario many events have occurred, and it seems that your financial plan after retirement has not been adjusted with each and every one of these life events. Therefore it is outdated and most likely not providing the benefits it once did.
Answer:
(a) The effective annual interest rate for a 3-month T-bill selling at $97,270 with par value $100,000 is 11.71%
(b) The effective annual interest rate for a 13% coupon bond selling at par and paying coupons semiannually is 13.42%
Explanation:
(a) A 3-month T-bill selling at $97,270 with par value $100,000
EAR =![[par value /price]^n-1}](https://tex.z-dn.net/?f=%5Bpar%20value%20%2Fprice%5D%5En-1%7D)
n = 3 months or 12/3 = 4 times in a year
= ![[100,000/97,270]^4 - 1](https://tex.z-dn.net/?f=%5B100%2C000%2F97%2C270%5D%5E4%20-%201)
=![[1.028066]^4 -1](https://tex.z-dn.net/?f=%5B1.028066%5D%5E4%20-1)
= 1.1171 - 1
= .1171 or 11.71%
b) EAR(coupon bond) = ![[1+.13/2]^2 -1](https://tex.z-dn.net/?f=%5B1%2B.13%2F2%5D%5E2%20%20-1)
=![[1+.065]^2 -1](https://tex.z-dn.net/?f=%5B1%2B.065%5D%5E2%20-1)
= ![[1.065]^2 -1](https://tex.z-dn.net/?f=%5B1.065%5D%5E2%20-1)
= 1.1342 - 1
= .1342 or 13.42%
Answer:
Some of the oligopoly effects are discussed as follows:
i. Restriction on output:
Implies that oligopoly results in small output and high prices as compared to other market structures, such as perfect competition.
ii. Price exceeds average costs:Implies that under oligopoly, there are restrictions on entry of new organizations. Thus, organizations charge prices more than the average costs. Therefore, consumers have to pay more in case of oligopoly market.
iii. Lower Efficiency:
Leads to non-optimum levels of output. This is because the output produced under oligopoly depends on the market share held by the organization. Thus, the oligopoly organizations fail to build the optimum scales of economies and achieve optimum output.
iv. Selling Costs:
Refer to high promotional costs. The oligopolists engage in high promotion tasks to take the share of its rivals. Thus, the resources are wasted in form of high selling costs which do not add to the satisfaction of customers.
Apart from aforementioned points, oligopoly shows the poor performance from various other angles. From the point of economic welfare, it fails to satisfy customers since the price charged is very high, even more than average costs. In addition, sometimes oligopolists may face wasteful fluctuations in output as the output is not determined optimally.
HOPE IT HELPS.
Answer:
b. $40,000
Explanation:
Step 1. Given information.
Loon Corporation distributes land with a basis of $350,000 and fair market value of $390,000 to Gerald in liquidation of his stock interest.
Step 2. Formulas needed to solve the exercise.
Gain to be recognized by Loon Corporation = Fair market value of the land - Basis
Step 3. Calculation.
Gain to be recognized by Loon Corporation = $390,000 - $350,000 = $40,000
Step 4. Solution.
The correct answer is 2nd. i.e $40,000
