he 50/30/20 financial rule of thumb suggests that 30 percent of income be used for: necessities. wants. savings. car buying. education. All of these choices are correct. Explain your answer and cite sources please
Q: If Rachel invest 1700 today in a account that pays 6 percent interest compounded annually how long…
A: The answer is in the explanation.Explanation:To solve this problem, use the formula for compound…
Q: We are evaluating a project that costs $2,160,000, has a 8-year life, and has no salvage value.…
A: Net Present Value is used to evaluate the investment and financing decisions that involve cash flows…
Q: The $1,000 face value 9% coupon bond pays interest semi-annually. The bond will mature in 3-years.…
A: The objective of the question is to calculate the convexity of a bond. Convexity is a measure of the…
Q: Cookie Dough Corporation has two different bonds currently outstanding. Bond M has a face value of…
A: A bond provides access to debt capital for the company from non-traditional sources such as…
Q: Valdez Corporation has bonds on the market with 11.5 years to maturity, a YTM of 7.2 percent, a par…
A: Number of years to maturity = 11.5YTM = 7.2%Par value = $1,000Current market price = $1,054To find:…
Q: Whole Foods, the world's leader in natural and organic foods, has more than 310 stores and 62,000…
A: The straight-line depreciation method is used depreciation methods to allocate the cost of an…
Q: Required information [The following information applies to the questions displayed below] The…
A: One of the profitability ratios that illustrates the amount of returns produced on average operating…
Q: Suppose you sell a fixed asset for $312,000 when its book value is $102,000. If your company’s…
A: After-tax cash flow is the selling price less the tax paid on capital gain. Capital gain is the…
Q: What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has…
A: The objective of the question is to find out the annual payment that one must receive to earn a 6.5%…
Q: Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June…
A: Cash flow statement is the financial statement which reports the cash inflows and outflows of an…
Q: For each of the following annuities, calculate the present value. Note: Do not round intermediate…
A: Present value is the discounted value of the future cash flows Table for present value calculation…
Q: Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of…
A: Loan is the present value of payments to be done over the period of loan based on the time value of…
Q: Five years ago, you seized an investment opportunity and invested $15,000 into this opportunity.…
A: Initial investment (I) = $15,000Future values (F) = $22,300Period (n) = 5 yearsInterest rate =…
Q: Web Cites Research projects a rate of return of 10% on new projects. Management plans to plow back…
A: The sustainable growth rate is which can be obtained without much external funding required.
Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…
A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…
Q: For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year…
A: Machine AMachine BFirst cost-$12,000-$25,000AOC per year-$1,000-$400Salvage value$3,000$6,000Life,…
Q: Jessica Railes is purchasing a condo and is shopping for an HO-6 policy. Her auto insurer quoted…
A: The objective of the question is to calculate the amount by which Jessica's insurance premium would…
Q: Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7.…
A: The Macaulay duration provides an estimate of how long it will take to recoup the investment in a…
Q: You run a construction firm. You have just won a contract to build a government office complex.…
A: The net present value is the difference between the PV of all cash flows and the initial…
Q: Attempts 1 1 Keep the Highest 1/3 5. Problem 7.09 (Yield to Maturity) eBook Harrimon Industries…
A: The objective of the question is to calculate the yield to maturity (YTM) of a bond at different…
Q: Which of the following is an example of a regressive tax? a) Income tax b) Sales tax c) Property tax…
A: The objective of the question is to identify which among the given options is an example of a…
Q: Calls Puts Strike Expiration Close Price Vol. Last Vol. Last Hendreeks 103 100 Feb 72 5.20 50 2.40…
A: A call option gives the holder the right, but not the obligation, to buy the underlying security at…
Q: Consider the following spot interest rates for maturities of one, two, three, and four years. r1 =…
A: The pure expectations theory assumes that investors do not consider long-term bonds to be riskier…
Q: Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on…
A: Borrowing = $400,000Number of years for which monthly payments are to be made = 15 yearsAdd- on…
Q: Future Value $28,000 Periodic Payment Payment Interval Term Conversion Period $220 1 month 8 years…
A: The annual rate of interest refers to the interest rate thang charged by the lender from the…
Q: Una Day is planning to retire in 14 years, at which time she hopes to have accumulated enough money…
A: Time till retirement: 14 YearsAnnuity amount after retirement: $17,000Years of annuity: 19…
Q: NPV for varying costs of capital LePew Cosmetics is evaluating a new fragrance-mixing machine. The…
A: Net present value refers to the capital budgeting used by the investors for decision-making by…
Q: 4.Please answer all the tables in their entirely
A: I did my best to help you with this. If you find my efforts and answers helpful, (^-^) Please help…
Q: You hold the positions in the table below. Price Shares Beta Amazon.com $49.00 101 3.97 Family…
A: Beta measures systematic risk. The beta of a portfolio is calculated as the weighted average beta of…
Q: ces A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 161,000 0 55,000 1…
A: Cash Flow for Year 0 = cf0 = -$161,000Cash Flow for Year 1 = cf1 = $55,000Cash Flow for Year 2 = cf2…
Q: The following table gives Foust Company's earnings per share for the last 10 years. The common…
A: A stock is a capital market security which offers the investor an ownership interest in the…
Q: 3. Five years ago, John bought the annual - coupon bond of XYZ. The coupon rate is 9%. Five years…
A: Price of bond is the present value of coupon payments plus present value of par value of the bond.
Q: Kara, Incorporated, imposes a payback cutoff of three years for its international investment…
A: The payback period of a project refers to the time it takes for the cash flows of the project to…
Q: A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2…
A: 13.70% is the MIRR of the project that maximizes shareholder value.Explanation:Step 1: The…
Q: Use PMT = 1+ -nt to determine the regular payment amount, rounded to the nearest dollar. The price…
A: Loans are paid by easy monthly payments that carry the payment for interest and also payment for…
Q: The Evanec Company's next expected dividend, D1, is $2.94; its growth rate is 6%; and its common…
A: To apply the constant dividend growth model, 2 requirements have to be fulfilled:(1) The growth rate…
Q: Strong-form efficiency would imply that both semi-strong and weak form efficiency hold. True False
A: The efficiency in markets represents that market prices are effectively aligning with the intrinsic…
Q: Additional information: 1. Net income was $18,450. Dividends declared and paid were $14,300. 2.…
A: To find the free cash flow, we must first compute the operational cash flow and then subtract the…
Q: A hedge fund with $4.4 billion of assets charges a management fee of 1.5% and an incentive fee of…
A: Assets under management (In million)$4,400.00 millionManagement fees1.5%Incentive fees10%Money…
Q: KO just paid a dividend of $8 per share. Analysts expect its dividend to grow at 27% per year for…
A: Just paid dividend (D0) = $8Growth rate for first 3 years (g3) = 0.27Growth rate after 3 years (g) =…
Q: What is the primary function of the Federal Reserve in the United States? a) Fiscal policy b)…
A: The Federal Reserve System looks after the financial activities and operations of the banking…
Q: Yosemite Corporation has an outstanding debt of $10.2 million on which it pays a 7 percent fixed…
A: In case of interest rate swap, one party pays floating rate to the counter party and receives a…
Q: Changes in net operating working capital can be excluded from a project's cash flows because the…
A: Changes in net operating working capital can be excluded from a project's cash flows because the…
Q: How much interest will be paid on a fixed rate mortgage of $115,000 for 30 years if the annual…
A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…
Q: A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2…
A: The Modified Internal Rate of Return (MIRR) is a financial tool that is used to evaluate the…
Q: Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two…
A: The objective of the question is to determine the marginal tax rate for Alan and Sara Winthrop based…
Q: Konawalski’s Kustom Erdapfel Chips, Inc., is the maker of gourmet German-style potato chips. The…
A: Stock value refers to the price at which the sale and purchase of shares among investors in the…
Q: ension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely,…
A: Perpetual payment = $2.2 millionYTM = 14.4%Assume that face value = $1,0005-years bond:Coupon rate =…
Q: A company is considering a new investment project with the following cash flow estimates: Year 0:…
A: Net Present Value (NPV) is a measure that assesses the profitability of an investment by comparing…
Q: Key Lime Pie Co. expects EBIT of $100,000 every year forever. Key Lime Pie Co. currently has no debt…
A: A levered firm refers to a company that has debt in its capital structure. Levered firms often use…
The 50/30/20 financial rule of thumb suggests that 30 percent of income be used for:
necessities.
wants.
savings.
car buying.
education.
All of these choices are correct.
Explain your answer and cite sources please
Step by step
Solved in 3 steps
- 1. Identify at least 3 personal goals using the SMART guidelines. Financial goals should be specific , measurable, have a definite timeframe, relevant, and imply the action to be taken. Your goals can be short term (less than a year, up to years), mid term (2-5 years), or long term (>5 years). 2. Identify your values and beliefs associated with money, write brief paragraph that identifies your values and belief about money. 3. Research 3 online financial tools or apps that you might use. These might be for budgeting, saving, shopping, coupons etc. describe the app or tool and whether you think you would use it or not. If you are already using online tools or apps, you can explain what you like or don't like about them.Using this template, formulate and create a minimum of three SMART goals related to these aspects of personal financial planning. For each goal, also identify why this is an important financial goal for you at this time. Career planning and development Spending plan/cash flow analysis Tax planning Savings and investing Use of creditLenny is setting her investment journey. What is the first step she should take to reach her financial goals? Make a list of her goals and prioritize them List down available financial products. automate insurance Evaluate her financial position and budget.
- Good day! I want you to answer only letter (2a).Note that PW, AW, and FW means (Present Worth)(Annual Worth) and (Future Worth)This is how you answer the problem. Identify first the given. Next identify what is being ask in the problem.Third show me the Formula first before you plug-in the given into it ,i want to study and learn from your solutionGiven the attached information, which of the answers below would be correct?: a. A would lend, consume 0 today and $105,000 next year b. G would borrow, consume $112,037 today and 0 next year c. A would lend, consume 0 today and $111,000 next year d. G would borrow, consume $105,714 today and 0 next year e. G would borrow, consume $111,111 today and 0 next yearOf all the money jars, which need to receive 50% of your income?A. NecessityB. GiveC. Long-term Spending SavingsD.
- Explain the market of loanable funds and your role as a A. borrower when you buy your next vehicle AND B. saver after selling your first home and profiting $100,000. • You are opening your own small business. You will need the capital to begin your business plan. Utilizing chapter 22 with figure 22.2. consider and explain your timeline of production for your small business.g. Living Expenses: Assume reasonable values for your living expenses. (You may adjust these numbers to fit your estimated costs, but a good starting point for monthly costs are Utilities: $150, TV: $40, Internet: $30, Cell Phone: $40, Phone: $40) You should also include estimates for food, gas, entertainment, and any other expense you can think of. What is your monthly payment for all of your living expenses?When it comes to financial planning, Karen is looking to understand what is meant by opportunity cost. I. What you give up as a result of a decision. II. Receiving the gift of a car from your parents. III. Your credit card. Select one: a. I and III, only b. II and III, only c. I only d. I and II, only
- Explain to a friend or relative how you would use the TVM concept to achieve their desired retirement amount. How much would they need to retire? How would you develop a savings plan using that number? Use Excel to calculate and explain the numbers when posting to the forum. Include the interest rate and investment. Starting amount is 45,000 at age 30 with the retirement age of 67Subject :- Accounting You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $85,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}if you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertiseif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertise
