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3 years ago

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Jeff believes he will need $60,000 annual income during retirement. if he can achieve a 6% return during retirement and believes

he will live 20 years after retirement, how much does he need to save by the time he retires? use appendix
d.

1 answer:

Paul [167]3 years ago

3 0

The answer to this question is C, $5,790. Jeff will need $5,790.

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Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 2.30%. What is the required rate o

koban [17]

Answer:

a. 9.98%

Explanation:

The computation of required rate of return is shown below:-

Required return= Risk - Free rate + Beta × (Market rate- Risk-free rate)

11.75% = 2.30% + 1.23 × (Market rate - 2.3%)

(11.75% - 2.30%) ÷ 1.23 = Market rate - 2.3%

Market rate = (11.75% - 2.30%) ÷ 1.23 + 2.3%

=9.98%

Therefore for computing the required rate of return on the market we simply applied the above formula.

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3 years ago

The open-economy macroeconomic model examines the determination of a. unemployment and the exchange rate. b. the output growth r

Andrei [34K]

Answer:

c. the trade balance and the exchange rate.

Explanation:

An Open Economy is an economy that allows the free inflow and outflow of goods, services, capital and people. The opposite of a closed economy.

What sets these two models apart is that in an open economy, both imports and exports are allowed, so that countries necessarily have to trade in more than one currency, so the exchange rate must be examined. In addition, business transactions are recorded in a balance of payments. So these are the two concepts that are not tried in a closed economy analysis, but are introduced in an open economy.

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3 years ago

The type of control system that only be succsseful in attining systrms' objective if we know with certinty the events that take

cricket20 [7]

Answer: Management control system

Explanation:

Management control system could be defined as a system that collects and uses information to analyze the performance of different organizational resources like human, physical, financial considering them all together in the light of organizational strategies pursued. It looks at comparing performances with the standards, plans or objective of the organization to determine if they are line with standards.

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3 years ago

Imagine that the U.S. economy has an initial unemployment rate equal to the natural rate of unemployment. Identify each event as

PilotLPTM [1.2K]

Explanation:

Let’s explore one by one as proposed:

An oil cartel raises oil prices: all prices in the oil-related products will increase making it more expensive for companies to be able to afford employees. As the US economy is heavily based on oil import and consumption, the unemployment rate (let´s call it UR from now on) would increase. Countries that export more than import could benefit from this scenario.

The U.S. dollar gains value against foreign currencies: It would be more expensive to produce goods in the US as its currency becomes stronger. Hence companies could choose to produce overseas, increasing the UR. One of the factors that attract investments is a cheap currency, meaning that a company could operate there at lower costs than anywhere else.

American consumers expect higher income in the future: As fights about average salary would arise between employees and companies, igniting even sindicalization, its proper to think that the same as above could occur; companies could choose to produce overseas in countries less demanding of labor rights and income, such as China provinces (I would recommend for you to watch American Factory, a awarded Netflix documentary about that subject).

Brazil experiences economic growth and increases its demand for U.S. exports: as I said in the first alternative, a country that has increased or more expensive exports could benefit from that creating more jobs, in this case decreasing the UR. If Brazil demands more US products, more has to be produced by the country, which would mean more people employed in this attractive sector.

U.S. real estate values rise: to be honest, it only affects indirectly. As housing becomes more expensive, people have to work more to be able to afford housing. That would mean they seeking better-paying jobs or in the absence of those being homeless of at least unable to buy a home. We could argue that the UR would decrease because it becomes more expensive to afford housing and hence people would migrate more but that’s a long shot rationale.

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3 years ago

Read 2 more answers

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

irina [24]

Relevant Information:

The relevant information is as under:

Segmented income statements appear as follows:

Product Original Strawberry Orange

Sales 65,200 85,600 102,400

Variable costs (44,000) (77,200) (80,200)

Contribution margin 21,200 8,400 22,200

Fixed costs allocated (9,400) (12,000) (14,200)

Operating profit (loss) 11,800 (3,600) 8,000

Answer:

The product not be closed because it is generating net cash flows of ($3,060), which will generate loss for the organization. The better option would be to not abandoning the manufacturing of Strawberry.

Explanation:

Relevant costing says that any savings or losses are relevant if it satisfy following three conditions:

Is a cash flow.
Future related (Not arising due to Past bindings).
Differential or Incremental in nature.

Its crystal clear that any inflows and outflows that are considered would be cash in nature, not related to past events it must be arising as a consequence of taking the decision whose consequences are we considering now, I mean it must arise in future due to the decision made which are considering. The last condition is the concept of differential that lies in the heart of relevant costing and is easily understood by following the following steps:

Step 1: What are the losses or savings if we don't make decision?

Step 2: What are the losses or savings if we make the decision?

Step 3: The difference between step one and two is differential or incremental cost.

Here we learned that relevant cost arises if we take the decision (closing manufacturing of Strawberry), and it doesn't arises if we don't take the decision (not abandoning manufacturing of Strawberry).

Relevant costs associated with the decision are as under:

Step 1 Step 2 Step 3

Make Decision If we Don't Differential

Revenue loss (85,600) - (85,600)

Variable Costs Savings 77,200 - 77,200

Fixed costs Savings (W1) 5340 - 5340

Operating Profit (3,060)

Working1: Fixed costs Savings

Total Fixed costs =21400+12000+14200 = $35,600

The saving is 15% of the total fixed cost and is as under:

Fixed costs Savings = $35,600 * 15% = $5340

Note:

Kindly also practice the following question:

brainly.com/question/14423321

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3 years ago