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Kaylis [27]
3 years ago
6

A customer who is age 75 has been taking RMDs (Required Minimum Distributions) each year from his Traditional IRA in cash. This

year, he asks his representative if he can take the distribution in the form of shares of a mutual fund position in his account. He tells the representative that because it has been a bear market, the share price is depressed and rather than liquidate, he would like to take the shares into his cash account at the firm, awaiting a market rebound. You should tell him that the RMD can:____________
Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer:

Taking his RMD in form of shares in a depressed market is a good investment decision. As the price will bound back and he will make more money.

Explanation:

When a traditional IRA holder gets to the age of 72 years he is entitled to required minimum distribution payments. This is not obtainable with other IRA plans.

RMD can be taken as cash or as shares. There is not tax difference between the two options.

Normally cash is better since it is easier to get access to and the beneficiary gets the exact dollar amount.

However when there is a depressed stock market, taking RMD in shares is a better option. Shares are bought and sold when prices appreciate.

This is a better option than selling shares at the low market price.

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You hold bonds issued by the city of Sacramento, California. The interest you earn each year on these bonds a. is not subject to
Anna35 [415]

Answer: a. is not subject to federal income tax and so these bonds pay a lower interest rate than otherwise comparable bonds issued by the U.S. government

Explanation:

Federal income taxes are the taxes that are used in the provision of national programs like settling national debt, infrastructural development, national defense, law enforcement etc.

If an individual owns bonds that are issued by the city of Sacramento, California, it should be noted that the interest that is earned each year on these bonds is not subject to federal income tax and so these bonds pay a lower interest rate than otherwise comparable bonds issued by the U.S. government. Comparable bonds that are being issued by the United States government pay an higher interest.

5 0
3 years ago
ABC Production ABC Production, a consumer products firm with a functional structure, is expanding from a single product line int
Ksivusya [100]

Answer:

Divisional product structure

Explanation:

Divisional product structure is also referred to as a product based structure. Employee are shared into divisions based on products they manufacture and sell within a particular geographic location.

The advantage of this structure is that employees work efficiently on the production and sale of one particular product.

This is ideal for ABC production that are expanding from a single product line into several diverse product groups, with most sales within one country.

8 0
3 years ago
Scenario 1
anzhelika [568]

Answer:

The first country invested in health care. It eradicated an epidemic that was weakening its present and future workforce. Its investment was successful because it made people productive again. The second country recognized the potential for productivity in young girls. By taking steps to train and educate them, the government made them eligible for quality employment. The second country's investment was successful because it strengthened its workforce and attracted foreign investment.

Explanation:

Edmentum (Plato) answer

3 0
4 years ago
Choose the term that best matches the description given.
romanna [79]

Answer:

internal secondary research data

Explanation:

4 0
2 years ago
You expect Technomess Company common stock to pay a dividend of $2.40 one year from now. You can buy the stock now for $52, and
Vinil7 [7]

Answer:

The stock price = $57.92

Explanation:

The return on a stock is the sum of the capital gains(loss) plus the dividends earned.

Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.

Total shareholders Return =  

(Capital gain/ loss + dividend )/purchase price × 100

16% = ((x-52) + 2.40)/52

0.16×52 = (x-52) + 2.40

8.32 = X- 52 + 2.40

52+8.32-240=X

57.92 = X

$57.92= X

The stock would need to be sold for  = $57.92

4 0
3 years ago
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