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Andre45 [30]
3 years ago
8

A new customer, age 45, has been terminated from his assembly-line job of the past 20 years at an automotive parts supplier. Dur

ing that time period, he has accumulated $124,000 in the company's 401(k) plan. He wishes to rollover the funds to an IRA account with your brokerage firm. This customer, who is an unsophisticated investor, has the entire 401(k) invested in a growth mutual fund and has no other investments. As the representative for this customer, you should be concerned about:________
Business
1 answer:
Gekata [30.6K]3 years ago
5 0

Answer:

communicating effectively with an unsophisticated customer in an understandable manner to assess financial goals and risk tolerance

Explanation:

The new customer who has accumulated $124,000 in his company's 401(k) plan wants to rollover his funds with a brokerage firm.

However he only invested in a growth mutual fund.

This is a scenario that could lead to total loss for the customer if the growth mutual fund fails. A better approach would have been to invest in more than one option.

The first action should be to communicate effectively with the unsophisticated customer in an understandable manner to assess financial goals and risk tolerance.

Based on his Prefered objectives an investment plan can be recommended for him

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The longer the time period considered the more the elasticity of supply tends to
sdas [7]
The longer the time period considered, the more the elasticity of supply tends to INCREASE.
The elasticity of supply refers to the responsiveness of suppliers to the change in price of their products or services. Elasticity of supply is measured as a ratio of proportionate change in quantity supplied to the change in price. Elasticity of supply tends to increase with time.<span />
5 0
3 years ago
lpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at t
kirza4 [7]

Answer:

13.86%

Explanation:

Calculation to determine the flotation-adjusted (net) cost of its new common stock

Using this formula

Cost of new common stock(re) = [d1 / stock price (1-flotation cost)] +g

Let plug in the formula

Cost of new common stock(re)= [$1.36 / 33.35 (1 – 0.065)]+0.094

Cost of new common stock(re)= [$1.36 / 33.35 (0.935)]+0.094

Cost of new common stock(re)= [$1.36/31.182)+0.094

Cost of new common stock(re)=0.04361+0.094

Cost of new common stock(re)=0.1376*100

Cost of new common stock(re)=13.76%

Therefore the flotation-adjusted (net) cost of its new common stock will be 13.76%

5 0
2 years ago
Rajesh Indian Market (RIM) is open 12 months out of the year. At RIM, the demand for rice is very consistent 200 pounds per mont
Paladinen [302]

Answer:

A. 566 pounds

Explanation:

Given: Demand for rice is very consistent= 200 pounds per month.

           Cost of rice per order= $50 per order.

           Rice cost= $5 per pound.

           Carrying charge= 15%

EOQ: Economic order quantity (EOQ) is the number of units that company should include in their inventory with each order to reduce cost of inventory.

Now, calculating EOQ.

Formula; EOQ= \sqrt{\frac{2DP}{C} }

D= Demand in units for specified period.

P= relevant ordering costs per order.

C= Relevant carrying cost of one unit in stock for the time period used for D.

EOQ= \sqrt{\frac{2\times (50)(200\times 12)}{5\times 15\%} }

⇒ EOQ= \sqrt{\frac{2(50)(2400)}{5\times (0.15)} }

Opening parenthesis

⇒ EOQ=  \sqrt{\frac{240000}{0.75} }

⇒ EOQ= \sqrt{320000}

∴ EOQ= 565.68\ pound \approx 566\ pounds

Hence, Economic order quantity is 566 pounds.

           

5 0
3 years ago
Diana invests $11,000 into two accounts. One account earns 9% interest and the other earns 15% interest. After one year her tota
inysia [295]

Answer:

1.15X + 1.09(11000 - X) = 11000 + 1452

1.15X + 11990 - 1.09X = 12452

0.06X = 462

X = 7700

The answer is

7700

Explanation:

5 0
3 years ago
1.1 W (5 marks) Calculate the economic order quantity (EOQ) per annum. Economic order quantity Startrek Secondary School purchas
klemol [59]

Based on the math sets purchased by Startrek Secondary School as well as its various costs, the Economic Order Quantity is 84.61 sets.

<h3>What is the Economic Order Quantity?</h3>

This can be found as:

= √(2 x Annual math sets needed x Ordering cost per unit/ Carrying cost

Carrying cost is:

= 80 x 11%

= R8.80

The EOQ is therefore:

=  √(2 x 700 x 48 / 8.8

= 84.61 math sets

Find out more on the Economic Order Quantity at brainly.com/question/26814787.

#SPJ1

7 0
2 years ago
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