I am 80% sure that the answer is c. (:
Answer:
a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose? What is its value?
I would choose the stock bonus because the current market price = 200 x $64 = $12,800 which is much higher than $4,600 (cash bonus)
b. Suppose that if you receive the stock bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus now? What will your decision depend on?
Even if you are required to hold the stock for one year, the price difference with the cash bonus is too great = ($12,800 - $4,600) / $4,600 = 178% higher. Since you are employed by the company, you should know if the company is doing well or not, and the probable future stock price.
Only if something catastrophic happened to the company would make the cash bonus more attractive.
Answer:
FED raise the federal funds rate target by 0.5%
FED raise the federal fund rate target by 2%
Explanation:
Taylor Rule states that Federal Funds should raise rates when inflation rises. When Gross domestic products growth of a country is high and above potential level then FED should raise rates. When inflation rises by 1% above target level then federal funds should raise FED by 2%.
Answer:
A gain of $16,100
Explanation:
When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.
The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.
Carrying amount
= $22,000 - $6,600
= $15,400
Gain/(loss) on sale of asset
= $31,500 - $15,400
= $16,100
A variable annuity contract is often described as a mutual fund family wrapped in an annuity contract. ... Many annuities offer a wide range of investment options, with up to 50 different funds. These annuity investment options are known as subaccounts. Some companies refer to these options as investment portfolios.