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What policies can a company establish to maximize wealth?

Address the misconceptions in the following assertions: 1) Training is not valuable. It doesn’t teach information that help managers drive the business.  It is an expense – not an investment. 2) Anyone can be a trainer. Give me some PowerPoints and I’m ready to go. Anyone can get up there and talk for an hour

Please help me determine the answer for this question. What is the present value at 6% discount of a cash flow at t = 1 of $1,000, followed by three more consecutive cash flows of $2,000 (at t = 2, 3, and 4). Hint: First draw a time diagram, then use the formula for PV

You need to borrow $65,000 for a new car. The annual interest rate is 12%, compounded quarterly. You will be making quarterly payments for three years. 1. What is your quarterly payment? 2. How much will you owe on the loan after you make the first payment? 3. How much will you owe on the

a) Think of something you want or need for which you currently do not have the funds for. It could be a vehicle, boat, horse, jewelry, property, vacation, college fund, retirement money, etc. Select something which costs somewhere between $2,000 and $50,000. Use the “Present Value Formula”, which computes how much money you need to

Sarah is age 73 and has a great deal of difficulty living independently, as she suffers from severe arthritis. She is covered by a $400,000 life insurance policy payable upon death, and her children are named as the beneficiaries. Because of her health, Sarah decides to live in a nursing home, but she does not

The Roth Case Tax Planning Your clients, Ira and Flora Roth, have come to you for some basis tax planning advice and guidance. Here are the facts you need to help them. • Ira’s earned income: $65,000 • Flora’s earned income: $52,000 • They live in Kansas and own a municipal bond issued by the

Does ERISA regulate mandated benefits such as Social Security benefits as well as voluntary benefits provided by employers? Donovan v. Dillingham, 1982 U.S. Court of Appeals decision (precedent) A “plan” under ERISA exists if a reasonable person can determine: The intended benefits A class of beneficiaries The sources of those benefits A procedure for determining

1. Jean Splicing will receive $50,000 in 50 years or $2,000 today. If long-term rates are 7 percent, what choice would you recommend? a. What is the current value of the future payments b. What is the current value, if they are received at the beginning of each year? 2. “Red” Herring will receive $11,000

- Explain how inflation or purchasing power impacts stated or nominal interest rates. – create a personal scenario that exemplifies the time value of money that includes the opportunity cost involved. – Discuss the pros and cons of annuities when compared with other financial instruments and whether they provide a better investment opportunity for some

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