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a_sh-v [17]
3 years ago
9

Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritan

ce. Kirby has interviewed two potential advisors. The first person indicated that he would not charge for his advice but would charge a 4.50% commission on any mutual funds purchased when managing the $250,000. The second person indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. Which advisor should Kirby choose if he wants the $250,000 managed and is interested in minimizing his upfront expenses?
A. The first advisor because there is no planning fee.
B. The second advisor because the total first-year cost is $5,000.
C. The first advisor because the total first-year cost is $5,000.
D. Because the cost is approximately the same, either advisor could be selected.
Business
1 answer:
Blababa [14]3 years ago
5 0

Answer:

The answer is A.

Explanation:

According to the details given in the question on the two financial advisor's approach, the first advisor does not request a payment but a commission on the funds purchased with the inheritance money. The second advisor does request payment for the job and also a share on the assets managed with the inheritance money.

If Kirby wants to minimize the upfront expenses which can be described as the sum that is paid before a service or a job is done, then the first advisor is the better option. So the answer is A.

I hope this answer helps.

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Answer:

The question is not comprehensive.

Explanation:

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3 years ago
Consider the following timeline detailing a stream of cash​ flows: The timeline starts at Date 0 and ends at Date 4. The cash fl
gizmo_the_mogwai [7]

Answer:

Present value= $20,227.45

Explanation:

Giving the following information:

On Date 1, the cash flow is 5,000 dollars. On Date 2, the cash flow is 6,000 dollars. On Date 3, the cash flow is 7,000 dollars. On Date 4, the cash flow is 8,000 dollars. The current market rate of interest is 10​%.

We need to use the following formula:

PV= FV/(1+i)^n

Date 1= 5,000/1.10= 4,545.46

Date 2= 6,000/1.10^2= 4,958.68

Date 3= 7,000/1.10^3= 5,259.20

Date 4= 8,000/1.10^4= 5,464.11

Total= $20,227.45

6 0
3 years ago
BE18.8 (LO 2) Presented below are three revenue recognition situations. a. Groupo sells goods to MTN for $1,000,000, payment due
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Answer:

a. Groupo sells goods to MTN for $1,000,000, payment due at delivery.

  • transaction price = $1,000,000
  • revenue recognized once the goods are delivered

No journal entry is required until goods are delivered and accepted.

b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days.

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  • revenue recognized immediately since goods were already delivered

The journal entry:

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c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000.

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The journal entry:

Dr Notes receivable 500,000

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3 years ago
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There will be an increase in quantity supplied. (The Law of Supply)

  • A key tenet of economic theory is the rule of supply, which asserts that a rise in price will result in an increase in the quantity provided, all other things being equal. In other words, there is a direct correlation between price and quantity, and quantities react to price changes in the same way.'
<h3><u>What is a case of the law of supply?</u></h3>
  • For instance, if Apple produces 100 iPhones, then this is the quantity that is sold. The link between pricing and supply is referred to as the "law of supply." Supply also rises in tandem with price growth. In the event that prices decline, so will supply.

To Learn more about Law of Supply, Click the links.

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8 0
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Which of the following illustrates a tradeoff​? A. Randy enjoys ski vacations. B. I will study for my exam instead of going to t
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A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B

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