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Genrish500 [490]
3 years ago
11

Your mom is thinking of retiring. her retirement plan will pay her either $250,000 immediately on retirement or $350,000 five ye

ars after the date of her retirement. which alternative should she choose if the interest rate​ is:
a. 0% per​ year?
b. 8% per​ year?
c. 20% per​ year?
Business
1 answer:
WITCHER [35]3 years ago
4 0
I will go with choice b for answer
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Answer:

The amount of $25,000 will be recorded as the Cash Dividends

Explanation:

The amount which is to be recorded as the cash dividend is computed as:

Cash Dividend = Number of Shares × Rate per share

where

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Number of shares = Issued Shares - Treasury Stock

= 30,000 - 5,000

= 25,000

NOTE: No dividend is paid on treasury stocks, so the the shares of the treasury stocks are subtracted.

Rate per share is $1

SO, Putting the values above:

Cash Dividend = 25,000 × $1

= $25,000

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A

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allochka39001 [22]

Answer:

The correct answer is option B.

Explanation:

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Cheers.

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