Answer:
Explanation:
Wage replacement ratio is the ratio of a person's gross income after retirement divided by his gross income before retirement.
We use the given information to asses his spending on his lifestyle
Salary = 100000
Saving = 15% of 100000 = 15000
Mortgage payment = 2350
The amount spent on lifestyle = 100000 - 15000 - 2350
= 82650
Thus considering only the available information
Wage replacement ratio = 82650/100000 = 82.65%
Hence,
among the given option
Jack must have 80% wage replacement ratio
Answer:
Part a
historical cost = this is when we carry assets and liabilities at cost less accumulated depreciation or amortization.
fair value = this is when we carry assets and liabilities at amount that they could be exchanged for at arms length between market participants
Part b
<u>Historical Cost </u>
Merits : Value are easy to obtain since they are generated internally
Demerits : Is not very accurate.
<u>Fair Value</u>
Merits : Accurate method as it reflects market situation
Demerit : Costly as data and information is obtained externally
Part c
Assets : Investment Property and Financial assets measured through Profit and Loss
Liabilities : Bonds
Part d
Income is shown more accurately and eliminates biases form estimates.
Explanation:
Historical Method carries assets and liabilities at cost less accumulated depreciation or amortization while Fair Value Model carries assets and liabilities at amount that they could be exchanged for at arms length between market participants
Answer:
c. List EZ Lawn stock on foreign stock exchanges to offset any currency losses.
Many foreign companies do this and list their stocks as ADRs in the US, so this is a method that actually works. The problem is that will listing American stocks in foreign markets help? Probably you could list some stocks in European, Japanese or even Canadian markets. But most foreign exchange markets pose a higher risk than a currency exchange risk.
Explanation:
Currency risk refers to the possibility that a company that engages in international trade losses money due to variations in the exchange rate between their domestic currency and a foreign currency. The best way to protect a company are currency hedged funds that trade currency exchange futures, but this option isn't included in the list.
a. Concentrate all of the EZ Lawn outsourcing to one or two neighboring nations. ⇒ This will increase the risk since it is similar to investing all your money in one single stock, it can be great or it can be a disaster.
b. Re-locate a team of EZ Lawn managers overseas to stay abreast of currency changes. ⇒ You can do this from anywhere in the world, you do not need to relocate someone.
d. Assign an EZ Lawn manager the task of monitoring currency fluctuations. ⇒ Similar to option B, it just takes a few seconds to do it and anyone can do it. It is something so basic that every company should do it. It is like telling someone that they shouldn't forget to keep breathing. It can help you deal with currency fluctuations, but it doesn't protect you from them.
Answer:
TRUE OK BRO I AM HERE FOR U