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NARA [144]
3 years ago
8

You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How

much would you need to have saved in your retirement fund to achieve this goal
Business
1 answer:
scoray [572]3 years ago
8 0

Answer:

$1,000,000

Explanation:

The full question is shown below:

You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)

In order to receive $80,000 per year forever, one needs to save the present value of the annual  cash flow using the present value formula for perpetuity as provided below:

PV of perpetuity=annual cash flow/annual interest rate

PV of perpetuity=$80,000/8%

PV of perpetuity=$1,000,000

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7nadin3 [17]

Outstanding shares will be 12,000 shares.

These are calculated as follows:

Here the number of shares are as follows;

Authorized shares are 20,000, Issued shares are 15,000, Treasury shares are 3,000

Therefore, the number of outstanding shares can be calculated as follows

Number of outstanding shares = Issued stock- Treasury stock

= 15,000-3,000

= 12,000

Hence the number of outstanding shares is 12,000

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8 0
2 years ago
If a company's free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORREC
Oliga [24]

Answer:

The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

Explanation:

Free cash flow (FCF) refers to the cash that a company generates after taking into consideration cash outflows needed to support operations and maintain the capital assets of the company.

When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.

Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

5 0
3 years ago
What is the formula to work out profit
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The main feature of this lesson is the equation P(x) = R(x) - C(x). Other important equations to remember are as follows: The breakeven point is when revenue equals cost, or when the profit is zero. Maximum profit will occur when marginal revenue equals marginal cost, or when the marginal profit is zero.

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Olivia johnson is an exempt employee and earns $125,000 per year. if olivia was paid on a biweekly basis, what would her gross p
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Olivia Johnson makes $125,000 a year as an exempt employee. if Olivia was paid on a biweekly basis her gross pay would be $ 5208.33.

<h3>What do you mean by Gross pay?</h3>

Before any deductions are done, a person's gross pay is their total earnings for a specific time period. Deductions such as mandated taxes and Medicare contributions, as well as deductions for company health insurance or retirement funds, are not taken into account when calculating gross pay. The gross pay definition differs from the net pay definition in that it does not include an individual's take-home pay.

The formula to calculate gross pay is mentioned below:

Net pay plus taxes and deductions equal gross pay.

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6 0
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Why convert a range of data into an excel table
crimeas [40]

Answer:

When you convert your range of data into an Excel table, by default, the Excel shades every other row in the table, making them easy to read. You can turn on/off the banded-row option from Table Style Options under the Design tab. You can also have banded columns.

Explanation:

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