Why are short term and long term goals important when it comes to money? Give an example of each

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to atten

Damm [24]

Answer: $0

Explanation:

From the question, we are informed that Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada and that Nicole is a sophomore and Naomi is a freshman.

We are further told that Nick and Katelyn's AGI is $202,000. Based on the above scenario, their allowable American opportunity tax credit will be $0. This is because when AGI is more than $180,000 for such taxpayers, the credit is being phased out.

5 0

3 years ago

(Bond valuation relationships) Stanley, Inc. issues 15-year $1 comma 000 bonds that pay $85 annually. The market price for

BaLLatris [955]

Answer:

a) The value of the bond (to you) is 959.6965579

b)

if the value of the market's required yield to maturity on a comparable-risk bond increases to 11 percent ; we have the value to be 820.2282606
if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent; we have the value to be 1136. 61871

c) Yield to maturity is the expected return on holding the bond till maturity

Thus, Bonds should be purchased when the yield to maturity is the highest ; As such!, if the yield to maturity on a comparable - risk bond decrease to 7%.

You should purchase the Stanley bonds at the current market price of $960.

Explanation:

Given that:

Par Value (F) = $1000

Interest Rate ( annual coupon rate) = $85

Market demand return ( yield to maturity) = 9% = 0.09

Time of maturity = 15 years

a. What is the value of the bond to you?

The value of the bond can be calculated as follows:

= $\frac{annual coupon}{yield}*(1-\frac{1}{(1+yield)^t} )(\frac{Par Value}{(1+yield)^t} )$

= $\frac{85}{0.09}*(1-\frac{1}{(1+0.09)^{15}} )(\frac{1000}{(1+0.09)^{15}} )$

= 959.6965579

Thus, the value of the bond to you = 959.6965579

b. What happens to the value if the market's required yield to maturity on a comparable-risk bond increases to 11 percent .

If increase to 11 % occurs:

we have :

= $\frac{85}{0.11}*(1-\frac{1}{(1+0.11)^{15}} )(\frac{1000}{(1+0.11)^{15}} )$

= $\frac{85}{0.11}*(1-\frac{1}{(1.11)^{15}} )(\frac{1000}{(1.11)^{15}} )$

= 820. 2282606

Hence, if the value of the market's required yield to maturity on a comparable-risk bond increases to 11 percent ; we have the value to be 820. 2282606

What happens to the value if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent?

If decrease to 7% occurs:

= $\frac{85}{0.07}*(1-\frac{1}{(1+0.07)^{15}} )(\frac{1000}{(1+0.07)^{15}} )$

= $\frac{85}{0.07}*(1-\frac{1}{(1.07)^{15}} )(\frac{1000}{(1.07)^{15}} )$

= 1136. 61871

c) Under which of the circumstances in part b should you purchase the bond?

Yield to maturity is the expected return on holding the bond till maturity

Thus, Bonds should be purchased when the yield to maturity is the highest ; As such!, if the yield to maturity on a comparable - risk bond decrease to 7%.

You should purchase the Stanley bonds at the current market price of $960.

8 0

4 years ago

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Cu

Delicious77 [7]

Answer and Explanation:

The computation is shown below;

1.

Working capital = Current Asset - Current Liabilities

= $569,000 - $280,000

= $289,000

2.

Current ratio = Current Asset ÷ Current Liability

= $569,000 ÷ $280,000

= 2.03

3.

Acid-test (quick) ratio = {(Current Asset - Inventory - prepaid expense) ÷ Current Liabilities }

= {{$569,000- $320,000 - $8,000) ÷ ($280,000)}

= 0.86 times

4.

Debt-Equity ratio = Total Liability ÷ Shareholders' Equity

= $670,000 ÷ $759,000

= 0.88 times

5.

Times interest earned = EBIT ÷ Interest Charges

= ($1,224,000 + $35,100) ÷ ($35,100)

= 35.87 times

6.

Average collection period

= 365 ÷ ($3,010,00 ÷ $215,000)

= 26 days

The $215,000 comes from

= ($210,000 + $220,000) ÷ 2

= $215,000

7. The average sales period is

= 365 ÷ ($1,110,000 ÷ $300,000)

= 99 days

The $300,000 comes from

= ($280,000 + $320,000) ÷ 2

= $300,000

8. The operating cycle is

= 99 days - 26 days

= 73 days

3 0

3 years ago

Which colonies was established as a place for debtors to make a fresh start?

docker41 [41]

James Oglethorpe established a colony in Georgia where debtors and the poor could make a fresh start.

Explanation:

Georgian founder James Oglethorpe started the colony specifically in 1732 as a debtor sanctuary, as an alternative to English prison for debtors.

Two thirds of Europeans settling in the colonies, as indentured servants, became debtors. On their part, the colonial states of Virginia and North Carolina, desperate on workers, provided rewards for offering debt protection for five years.

Lepore argues that the founding fathers Jefferson and Washington were so indebted to the London banks that the English Declaration of Independence represented the principles of the political Revolution as well as their own balance sheets.

8 0

4 years ago

Creating new jobs, inventing new products, and opening new stores are actions of a(n) _____.

slamgirl [31]

Creating new jobs, inventing new products, and opening new stores are actions of an ENTREPRENEUR.

Entrepreneurs are individuals who not only start up new businesses but are the ones fully involved in the process of creating new businesses, from business proposals to market studies to business launching and its day to day operations.

Entrepreneurs help lower unemployment rate because with their new businesses they create new job positions for those unemployed individuals.

6 0

4 years ago

Why are short term and long term goals important when it comes to money? Give an example of each￼

Why are short term and long term goals important when it comes to money? Give an example of each