Answer:
Annual withdraw= $143,023.66
Explanation:
Giving the following information:
Present value (PV)= $2,000,000
Number of periods (n)= 57
Interest rate (i)= 7% a year
<u>To calculate the annual withdrawal, we need to use the following formula:</u>
Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]
Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]
Annual withdraw= $143,023.66
In this case, there is likely a problem of <span>equality of outcome.
Equal outcome is a political concept where a certain group of people within a society unable to obtain the same results compared to other group given the same chance that exist in front of them. (This concept a little bit different with equal opportunity where those group of people may not receive the chance to begin with)</span>
Answer:
$90,000
Explanation:
Calculation to determine what Jamie’s at-risk limitation on losses is:
Using this formula
Risk limitation on losses=[Partnership M +(General partnership interest× Recourse debt agreement)]
Let plug in the formula
Risk limitation on losses= [$40,000 + (50% × $100,000)]
Risk limitation on losses=($40,000+$50,000)
Risk limitation on losses=$90,000
Therefore Jamie’s at-risk limitation on losses is:$90,000 and the reason why Jamie’s at-risk limitation on losses was the amount of $90,000 was because of his share of the recourse debt of the amount of $100,000 as well as the cash amount of $40,000 he invested.
Answer:
$60.80
Explanation:
The value of the stock can be determine by using calculating the present value of the dividend. In this question the dividend of $14.40 will be paid for a specified period of six year. This is a type of annuity and we can calculate the stock value using following formula.
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
where
P is the annual payment means dividend payment of $14.40
r = required rate of return = 12%
n = numbers of years = 6 years
Placing value in the formula
Value of Stock = $14.40 x [ ( 1- ( 1+ 12% )^-6 ) / 12% ]
Value of Stock = $14.40 x [ ( 1- ( 1.12 )^-6 ) / 0.12 ]
Value of Stock = $60.80
