<span>Mike will earn $2,400,000 for the year. Social security withholds 6.2% which equals $148,800, though Social security has a maximum base amount of $118,500. So the total amount withheld for Social Security will be $118,500. Medicare withholds 1.45% which equals $34,800. So the total amount withheld for Medicare will be $34,800. The total withheld from both Social Security and Medicare would be $153,300.</span>
Answer:
$12,380
Explanation:
The beginning inventory is $9,150
The budgeted ending inventory is $10,420
The cost of goods sold is $11110
Therefore the budgeted purchases can be calculated as follows
= $10,420 + $11,110-$9,150
= $21,530 - $9,150
= $12,380
Hence the budgeted purchases is $12,380
Answer:
The answer is: All the options are correct (I, II and III)
Explanation:
The larger the number of individuals (e.g. securities analysts, investors) who are informed about the price system of securities, the prices of securities will approach informational efficiency.
When the system approaches informational efficiency, you can determine which securities are riskier than others. Therefore you can price riskier securities so that they offer higher expected returns.
The other positive effect of informational efficacy is that investors can determine which securities are undervalued or overvalued.
Answer:
a) 469.40%
b) 18.15%
Explanation:
a)
Total nominal growth rate = 
thus,
Total nominal growth rate = 
= 469.40%
b) Total real growth rate = 
now,
Real earned income in 1976 = 
= 
= $20,267.54
and,
Real earned income in 2016 = 
= 
= $23,947.21
Therefore,
Total real growth rate = 
= 18.15%
Answer:
The present value of the future earnings is $51,981,214.36
Explanation:
The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.
Taking the value in millions,
Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +
1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]
Present value = $51.98121436 million or $51,981,214.36
