Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 17, Problem 3SP
a)
Summary Introduction
To determine: Whether Company A needs to move to the monthly wage payment system.
b)
Summary Introduction
To determine: The annual
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Tucker works for a retail distribution company that was recently started. Tucker has invested a lot of his earnings into shares of the company. When quarterly earnings are posted, Tucker receives a check for 8% of the quarterly profit of the company. Tucker belongs to a __________ corporation.
A. Closely-held
B. Professional
C. Subchapter S
1. Peter is a broker who earns commission of 3 1% on all securities sales that he makes. For
the past year, he closed sales totaling P928,867, Find the amount of commission he
earned for the year.
2. Roger is a Sales Engineer receiving a basic monthly compensation of P13, 500.00 and
commission on all sales of 1%. Compute for his gross earnings for the month if he sold
P124, 580.00.
3. Alex is a straight commision Salesman, He is given commission on the basis of the
following schedule:
Monthly Sales
Less than P50,00..
1%
P50,000-99,999.
2%
P100,000-149,999.
3%
P150,000 and above.
4%
Compute for his commission assuming his total sales is:
a. P75,800
b. P49,900
c. P151,200
d. P123,500
4. Moses is a Sales Representative receiving an annual salary of P130,000 plus commission
an all his sales above quota of P25,000 in accordance with the following schedule:
First P30,000 above quota
%
Next P50,000
1%
Next P70,000
2%
Over P150,000
3%
Compute for his gross earnings if his sales for the month:…
Instructions:
1. Analyze the given scenario and choose what type of investment is best for Mr. Santos. Explain your answer. (include your analysis through computations)
Scenario:
Mr. Santos is a government employee, His time deposit account of P 500,000 with 4% interest p.a. maintained with BDO generates a monthly interest of P 1,334.00 (net of 20% withholding tax). He is not satisfied with the earnings that he was receiving.
One day, he talked to a BDO financial adviser to seek advice on where to place his money with a higher interest rate. The financial adviser explained to him the following options:
1. Treasury-Bills -placement 30 days 6% one year
2. Bonds issued by San Miguel Corporation Face Value per bond P 100,000, 6% yield, quarterly coupon rate, term 10 years.
3. PLDT preferred 12 % Shares of stocks par value, P 100 per share with Market value P 150 per share.
If you are Mr. Santos, what option are you going to choose?
Chapter 17 Solutions
Foundations Of Finance
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - What are the two major objectives of the firms...Ch. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 1SPCh. 17 - Prob. 2SPCh. 17 - Prob. 3SPCh. 17 - (Interest rate risk) Two years ago your corporate...Ch. 17 - Prob. 6SPCh. 17 - Prob. 7SPCh. 17 - Prob. 8SPCh. 17 - Prob. 9SPCh. 17 - Prob. 10SPCh. 17 - Prob. 11SPCh. 17 - Prob. 1MCCh. 17 - Prob. 2MCCh. 17 - Prob. 3MCCh. 17 - Prob. 4MC
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