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AysviL [449]
3 years ago
12

Which statement is most likely correct about retirement planning? most retirees don't need to worry about inflation. your living

costs will remain constant once you retire. social security will cover most of your expenses. your employer's pension combined with your social security will cover your retirement expenses. your pension may remain constant even in an inflationary environment?
Business
1 answer:
Semenov [28]3 years ago
6 0
<span>After thorough researching, the statement that is most likely correct about retirement planning is that your living costs will remain constant once you retire. Retirement planning is important to formulate in order to have a systemized processing of the financial perks.</span>
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Billy's is currently an all equity firm that has 115000 shares of stock outstanding at a market price of $36.22 a share. The fir
Len [333]

Answer:

So, Break-even EBIT is $265,643.45

Explanation:

Let Break-even EBIT be $x

Number of shares outstanding = 150,000

Current Price of share = $39.36

EPS = EBIT / Number of shares outstanding

EPS = $x / 150,000

Levered Plan:

Value of Debt = $100,000

Interest Rate = 9.6%

Interest Expense = 9.6% *$100,000 = $9600

Number of shares repurchased = $100,000 / $39.36

Number of shares repurchased = $2,541

Number of shares outstanding = 150,000 - 2,541

Number of shares outstanding = 147,459

EPS = (EBIT - Interest Expense) / Number of shares outstanding

EPS = ($x - $9600) / 147,459

EPS under All equity plan = EPS under levered plan

$x / 150,000 = ($x - $9600) / 147,459

147,459 * $x = 150,000 * $x - $675,000,000

$675,000,000 = 2,541 * $x

$x = $265,643.45

So, Break-even EBIT is $265,643.45

3 0
4 years ago
17-2. Assume that an average firm in the office supply business has a 6% profit margin, a 40% total liabilities/assets ratio, a
S_A_V [24]

Answer:

No it will not, the statement is incorrect.

Explanation:

if the firm is making a profit, then it means it is growing, so we must determine the firm's growth rate:

firm's growth rate = return on assets (ROA) x (1 - dividends paid)

since we are not given ROA, we must calculate it first:

ROA = net profit x asset turnover =  6% x 2 = 12%

now we go back, firm's growth rate = return on assets (ROA) x (1 - dividends paid) = 12% x (1 - 40%) = 12% x 0.6 = 7.2%

The firm can manage to support an annual growth rate of up to 7.2% before it needs to borrow money or issue new stocks.

6 0
4 years ago
Singh has found that he needs increasing amounts of alcohol to have the desired effect.  In other words, Singh has developed a(n
Dima020 [189]
Singh has developed a dependency for alcohol. 
8 0
3 years ago
How does fractional banking allow there to be an increase in the money supply?
igomit [66]
Banks can lend up to 90% of money on deposit in the bank to other clients.
The other 10% that the bank does not lend is called the "fractional reserve".

Now, by lending this 90% to a client, the money supply may increase based on the procedure below:
First client deposits 100$ in the bank
Bank lends 90$ to second client who deposits these 90$ in another bank
This other bank lends 81$ from the deposited 90$ to a third client who deposits them in a new bank.
The new bank lends 72.9$ out of these 81$ to a fourth clients who deposits them in a different bank......and so the cycle continues increasing the money supply
4 0
4 years ago
You obtain a vehicle loan from the bank for $34,720 for a term of 4 years at an annual interest rate of 7.5%.  Use the amortizat
Alla [95]

Answer:

TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]

TVM=839.49

Explanation:

An=34,720

t=4 yrs , ---> n=48 (4*12)

j=7.5 %.---> i=0.075/12

m=12

* i=j/m

*n=mt

TVM=An*i : [1-(1+i)^-n]

TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]

TVM =839.49 (round two decimal)

4 0
4 years ago
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