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Kaylis [27]
2 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]2 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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Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract
yanalaym [24]

Answer: a) Fuel Connector's place of business.

Explanation:

Since Go-Flo is expected to pick up the goods from Fuel Connector Products, Inc., therefore, Go-Flo should pick up the the hose couplings and fittings from Fuel Connector's office. Also, since the contract does not specify a place so its only logical that Go-Flo would have to go to Fuel Connector's place of business.

5 0
3 years ago
A public health expert is writing a report on lead hazards for a widespread audience. any terms in the report that are unfamilia
Mariana [72]
That would be introduction.
5 0
2 years ago
Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow$8000 to purchase your dream Harley David
spayn [35]

Answer:

R=154.66941

Explanation:

the payment will be made monthly so we need to convert the 5.99% APR in to moths

Monthly Interest =5.99%/12 = 0.499%

Total payments = 60

Amount Borrowed = $8000

Rental = ?

Using the annuity formula = P=R*(1-(1+i )^-n ) / i

So we have = 8000=R*(1-(1+0.499%)^-60) / 0.499%

8000=R* (1-0.74181) / 0.499%

8000=R* 0.25818/ 0.499%

8000=R*51.72321

R=8000/51.72321

R=154.66941

6 0
3 years ago
A country made education free and mandatory up to age 15. It established 100 new schools to educate kids across the country. As
bazaltina [42]

Answer

Hi,

A country made education free and mandatory up to age 15. It established 100 new schools to educate kids across the country. As a result, citizens acquired the __skills____ required to work. The schools generated__jobs___ for teachers and other staff. In 20 years, the country saw a rapid __increase____ in its GDP.

Explanation

When the country makes education free and mandatory, many parentsare encouraged to take their kids to school to learn and acquire skills needed for them to participate in building the nation. Establishing new 100 schools is investing in human capital which will create employment opportunities for teachers and other staff in the education and training sector. When employment opportunities are created, people will earn money and pay taxes to the government. This will in turn cause growth of the GDP of the country.

Good luck!

6 0
3 years ago
Read 2 more answers
Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders
dolphi86 [110]

Answer:

The first part of the question is missing, so I looked for a similar question. I'm not sure that it is the same, but it can help you understand how to solve it.  

Paid-In Capital:

Preferred Stock—5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding : $220,000

Common Stock—$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding : 760,000

total dividends distributed:

2018: $9,000

2019: $45,000

preferred dividends = $220,000 x 5% = $11,000

Distributed dividends:

2018:

$9,000 in dividends distributed to preferred stockholders, $0.45 per preferred stock.

2019:

$13,000* in dividends distributed to preferred stockholders, $0.65 per preferred stock.

$32,000 in dividends distributed to common stockholders, $0.084 per common stock.

Since preferred dividends are cumulative, if they are not paid off during a certain year, they will have to be paid in the future before any common dividends are distributed.

5 0
3 years ago
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