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3 years ago

A savings account is useful for all of the following purposes EXCEPT…

Business

2 answers:

Dimas [21]3 years ago

8 0

Answer:

The correct answer is letter "A": Putting aside money for retirement.

Explanation:

Savings accounts are those where individuals' can deposit money to profit from the annual interest banks and financial institutions provide. Retirement accounts, on the other hand, are those funded with money discounted from employees' paychecks and do not allow withdrawals unless there is a major qualifying event -<em>if the type of retirement account allows it</em>.

VashaNatasha [74]3 years ago

8 0

Answer:

Explanation:

hope it helps

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A firm’s stock is expected to pay a $2 annual dividend next year, and the current $50 stock price is expected to rise to $60 ove

pochemuha

Answer:

Expected rate of return will be 24%

So option (b) will be correct option

Explanation:

We have given dividend in next year will be $2

So dividend $D_1=2$ $

Current stock price $P_0$ = $50

And it is given that in next year stock price is $60

So growth rate $=\frac{60-50}{50}=0.2$ = 20%

We have to find the expected return after 12 month, that is after 1 year

We know that current price is given by $P_0=\frac{D_1}{R_e-g}$

$50=\frac{2}{R_e-0.2}$

$50R_e-10=2$

$50R_e=12$

$R_e=0.24$ = 24%

So expected rate of return will be 24%

So option (B) will be correct option

3 0

3 years ago

Illinois Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hou

Harlamova29_29 [7]

Answer:

$480

Explanation:

Data provided in the question:

Machine Hours Repair Costs

2,400 $6,385

1,200 $3,480

2,000 $5,285

3,400 $8,980

Now,

Machine Hours Repair Costs

Highest 3,400 $8,980

Lowest 1,200 $3,480

Difference 2,200 $5,500

Unit variable cost = $5,500 ÷ 2,200

= $2.5

Total cost at high level = $8,980

Machine hours highest level = 3,400

Also,

Total cost at high level = Fixed cost + Variable cost at highest level

$8,980 = Fixed cost + [ $2.5 × 3,400 ]

Fixed cost = $8,980 - [ $2.5 × 3,400 ]

= $8,980 - $8,500

= $480

7 0

3 years ago

Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 24 percent per year during the next three years, 14

White raven [17]

Answer:

$1.25

Explanation:

dividend growth:

year growth rate dividends

1 24% Div₁ = 1.24Div₀

2 24% Div₂ = 1.24²Div₀ = 1.5376Div₀

3 24% Div₃ = 1.24³Div₀ = 1.906624Div₀

4 14% Div₄ = 1.906624Div₀ x 1.14 = 2.17355136Div₀

indefinite 8% Div₅ = 2.17355136Div₀ x 1.08 = 2.347435Div₀

required rate of return = 10%

current stock price = $86

stock price for terminal growth rate = Div₅ / (10% - 8%) = Div₅ / 2% = 117.3717734Div₀

current stock price = $86 = 1.24Div₀/1.1 + 1.5376Div₀/1.1² + 1.906624Div₀/1.1³ + 2.17355136Div₀/1.1⁴ + 117.3717734Div₀/1.1⁴ = 1.12727Div₀ + 1.27074Div₀ + 1.43247Div₀ + 1.48456Div₀ + 80.1665Div₀ = 85.48154Div₀

$86 = 85.48154Div₀

Div₀ = $86 / 85.48154 = $1.006065

Div₁ = 1.24 x $1.006065 = $1.2475 ≈ $1.25

8 0

3 years ago

Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.95 Direct labor

Paraphin [41]

Answer:

The correct answer is $27,675.

Explanation:

According to the scenario, the given data are as follows:

Variable manufacturing OH = $1.75

Fixed manufacturing OH = $19,800

Units = 4,500 units

So, we can calculate the total amount of manufacturing overhead cost by using following formula:

Total manufacturing OH = Total variable OH + Total fixed OH

Where, Total variable OH = $1.75 × 4,500 = $7,875

By putting the value, we get

Total Manufacturing OH = $7,875 + $19,800

= $27,675

7 0

3 years ago

Is there a potential problem if governments continually finance goods and services by borrowing money ? A.Yes, it is unconstitut

frosja888 [35]

The answer is B,"Yes, eventually their debts must be repaid with interest.

4 0

3 years ago

Read 2 more answers