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nevsk [136]
3 years ago
9

Todd irrevocably transfers property to a trust over which he retains an annuity payment each year equal to 6% of the initial fai

r market value of the property transferred to the trust. Todd designates the United Way as the remainder beneficiary. Which of the following statements concerning this transfer is true?
a. Todd can make an additional contribution to the trust in subsequent years.
b. Todd must inform the United Way of their right to the remainder of the trust s assets.
c. Todd will receive an income tax charitable deduction on his income tax return for the year in which the trust is formed.
d. The United Way can force Todd to transfer the present value of their interest to them immediately.
Business
1 answer:
evablogger [386]3 years ago
5 0

Answer: Todd can make an additional

contribution to the trust in subsequent year

Explanation:

He his at liberty to do this if willing.

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PLS HELPPP FASTTT!!!! Which of the following is not consistent with the efficient market hypothesis?
Morgarella [4.7K]

Answer:

c. News has no effect on stock prices.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country. For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis which states that, asset (share) prices reflect all information and it is very much impossible to consistently beat the market. Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

According to the efficient market hypothesis, News has an effect on

the prices at which a stock is sold because it affects demand and supply.

6 0
3 years ago
Briefly describe what is meant by the industrial market structure (IMS). Why is an understanding of the IMS so important for com
Nitella [24]

Answer is given below:

Explanation:

  • Industrial market structure is a systematic representation of different organization based on the level of competition for these products or services
  • the nature and nature of these products or services in the market.
  • Industry market is structured is important in a company's strategic management process for the following reasons
  1. Clearly assess business objectives
  2. Knowing how much competition there is in the market.
  3. Get details of your competitor's business development.
  4. Competing in the market
8 0
3 years ago
Presented below is pension information for Company Y for 2021.
iren [92.7K]

Answer:

The Amount of pension expense is $195,000

Explanation:

The computation of the amount of pension expenses reported is shown below:

Service cost    $150,000

Interest on projected benefit obligation  63,000

Amortization of prior service $54,000

Less: Expected return on plan assets  -$72,000

The Amount of pension expense is $195,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
2 years ago
Avido Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is expected to grow at a constant rate of
Tatiana [17]

Answer:

6.57%

Explanation:

Given that,

D1 = $2.00

Dividend growth rate, g = 4.50%

Stock price, P0 = $47

Before-tax cost of debt = 6.50%

Tax rate = 40%

Target capital structure for Debt = 45%

Target capital structure for Common equity = 55%

Cost of equity:

= (D1 ÷ P0) + g

= ($2.00 ÷ $47) + 4.50%

= 4.25% + 4.50%

= 8.75%

After tax cost of dept:

= Before tax cost of dept × (1 - Tax rate)

= 6.50% × (1 - 0.40)

= 6.50% × 0.60

= 3.9%

Company’s WACC if all the equity used is from retained earnings:

= (Cost of equity × Percent of common equity) + (After tax cost of dept × Percent of debt)

= (8.75% × 55%) + (3.9% × 45%)

= 4.8125% + 1.755%

= 6.57%

4 0
3 years ago
On Monday PBC (Peanut Butter & Chocolate) Candy Company’s entire balance sheet comprised real assets of $500 million and cas
zimovet [89]

Answer:

c) Debt of $20 million and assets of $570 million

Explanation:

Line of credit increases liability in a company's Balance sheet only when it is used. Thus, PBC (Peanut Butter & Chocolate) Company will have debt of $20 Million and Assets of $570 Million

8 0
3 years ago
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