Jason has participated in a 2% per year of service, career-average, defined benefit pension plan for the last three years. During those three years, his annual salaries were $25,000, $30,000 and $35,000. What annual pension entitlement has Jason earned to date? O a) $600 O b) $1,800 O c) $2,100
Q: QUESTION 5 Because the maturity risk premium is normally positive, the yield curve must have an…
A: The Above Statement is 'False'.
Q: Consider the following information: Rate of return State of Economy Probability Stock A Stock B…
A: Thanks for posting this question but as per the guidelines in the case of multiple questions we have…
Q: How much is the sum of the present value of the expected return over those periods
A: Cash Flows (Year 1-10) (CF) = $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…
Q: A В C D Php Php Php Php First cost 24,000 30,000 49,600|52,000
A: Given,
Q: Exercise 2: 1. An investment amounting to P300,000 has an annual interest of 4%. How much discount…
A: Simple interest is the interest without compounding that simple plain interest is calculated over…
Q: Choose one specialized industry and identify one specific financial reporting standards or distinct…
A: An industry is a branch of the economy that generates a closely related collection of raw materials,…
Q: Let's say that the rights to Frederico John Michael's masterpiece “the paintings” are to be…
A: Year 1 2 3 4 5 Annual Casl Flow $ 3,50,000.00 $ 3,80,000.00 $ 4,00,000.00 $ 4,50,000.00 $…
Q: Q#8. each of 20 different stocks. The portfolio has a beta of 1.1. You are considering purchasing…
A: A portfolio is a collection of investments where it exhibits similar properties. A portfolio can…
Q: You have S10,000 to invest for 90 days. Current spot rate: $1.32/£. The 90-day forward rate is…
A: Forward rate = [Spot rate * (1 + domestic interest rate) ]/ (1 + foreign interest rate).
Q: At age 30 you deposit 150 pesos at teh end of each month into SSS that pays 4% interest compounded…
A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…
Q: What is a letter of credit? A bill of lading? A draft?
A: Credit is referred as the trust, which helps in allowing one party to provide the funds or resources…
Q: Congratulations! You have been hired as an agent representing Johnny Baseball. Johnny doesn’t care…
A: Note: This post has several questions. The first has been answered below: The present value of…
Q: A $2,400 payment is due 6 months from today. What is the equivalent value of the $2,400 payment if…
A: The more is the compounding more is the effective interest rate and more is the interest accumulated…
Q: Greta has risk aversion of A = 5 when applied to return on wealth over a one-year horizon. She is…
A: The formula for the calculation of Sharpe ratio is as follows: Sharpe ratio=Return on asset-Risk…
Q: If a coupon bond that is going to mature in two years is selling at par. Suppose its coupon rate is…
A: Given, Coupon payment is $100 Yield to maturity at beginning is 10% Yield to maturity at end is 5%…
Q: Briefly explain the following by providing the meaning of the concept and list 2 benefits for each…
A: The Financial Accounting Rules Board publishes a collection of accounting principles, standards, and…
Q: with an investment of OMR 100,000. She has provided the following information Styles about two…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: ind pays no dividends. One year from now, there is a 50% (risk-neutral) probability that the stock…
A: European call can be exercised only on expiration unlike American call that can be exercised any…
Q: e interest rate was 20% and
A: Income refers to the amount which a person should earn from selling goods and services or an amount…
Q: The discounted payback method is better than the regular payback method because The time value of…
A: Payback period is the amount of time required to recover initial investment. Regular payback period…
Q: Transferring corporate assets to shareholders for less than fair market value is a form of Multiple…
A: Looting is the practice of obtaining or seizing items by force, usually during a military,…
Q: What’s one personal finance lesson that you find important?
A: Handling the reality of personal money may be difficult, even for an adult with a lot of…
Q: 1. An investment of P270, 000 can be made in a project that will produce a uniform annual revenue of…
A: In corporate finance, the payback period reflects how long it'll take you to repay your investment…
Q: Capacity Use and External Financing. If Growth Industries from Problem 13 is operating at only 75%…
A: Given: Particulars Amount Liabilities $10,000 Net income $31,600 Sales $200,000 Total…
Q: d) What are the key developments in electronic banking does in recent time? How h a s it become so…
A: The advancement and progression of information and communication technology, combined with the…
Q: Is DDM and CAPM suppose to be the same numbe
A: There are many ways to do valuation of stock one is DDM and other is CAPM these are two important…
Q: a) In each of the following parts, write an expression that shows the relationship among the listed…
A: Bonds are debt instruments which are used as an instrument to raise funds. Issuer who raise debt has…
Q: withholding taxes). Calculate the net present valu of this project assuming the company hedged 50 of…
A: International financial management, often refers to international finance, is the administration of…
Q: Assume that your hotel decided to add new menu items to the restaurant's menu. This project will…
A: Year Cash flow 0 -15000 1 10000 2 3000 3 3000 4 300 5 300
Q: There are two LBO funds set up for ten years with $1 billion committed capital each. Fund A has the…
A: Two LBO Funds - 10 years with $1 Billion Capital each Fund A - Constant management Fee = 2% and…
Q: Let's say you are a credit analyst in the asset management department of a large bank or insurance…
A: We are not allowed to use excel so the excel sheet cannot be attached but I have provided the…
Q: You borrow money on a self liquidating installment loan (equal payments at the end of each year,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: A project requiring an immediate investment of $130,000 and a further outlay of $44,000 after four…
A: Internal rate of return is the rate at which NPV of investment is Zero. It can be calculated by…
Q: A car costing $ 48182 is purchased with a 25% down payment and further payments of X at the…
A: Loan refers to the amount provided to financial transaction where amount is provided to a person…
Q: operating income (EBIT) f
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Income tax is levied on all of the following taxable items except: O Wages O Interest and dividends…
A: Income tax is levied on Wages, Interest and dividends from moeny invested and Capital gains from…
Q: A B 1 Particulars Values 2 Future Value (FV) 3 Interest rate Compounded monthly (I/Y) |0.05 4…
A: When interest is compounded monthly, the interest rate per annum shall be divided by 12 to calculate…
Q: The finance charge on Lauren's credit card bill last month was $13.50. Her APR is 18%. What was her…
A: Monthly Periodic rate = APR/Number of months In a year
Q: Analysts forecast Power Puff to generate $110 million of free cash flow at the end of the current…
A: The unlevered company has no debt in its financing, i.e., it is entirely funded by equity. On the…
Q: Caroline purchased 100 shares of Coca-Cola (K) in early 2012 for $35 07/share. KO paid the following…
A: Total return on sale of shares which were purchased previously = (selling price -purchase price…
Q: recommended actions on how to address: Execution risk Strategic risk Reputation risk Process…
A: Financial risk refers to a variety of risks related with funding, such as financial transactions…
Q: Question 04 a) Briefly explain why a country without a robust financial system might struggle to…
A: The Securities and Exchange Commission (SEC) is an independent federal regulatory organization…
Q: give three examples for each context. 1.Portfolio analytics
A: Standard disclaimers “Since you have asked multiple question, we will solve the first question for…
Q: Find the term of the following ordinary general annuity. State your answer in years and months (from…
A: Hence The Term of Annuity is 5 years 9 Months.
Q: You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: VARIANCE MH BERHAD СВ BANK АР BANK 0.000071 0.000078 0.000048 Compare each bank variances and choose…
A: Variance is referred as the measurement of the spread, which is between the data set's numbers. An…
Q: A tax-advantaged pension plan, such as a 401(k), that both employer and employee may contribute that…
A: 401(k) is a defined contribution pension plan in which employee and employer can make contributions…
Q: A car costing $ 48182 is purchased with a 25% down payment and further payments of X at the…
A: Loan Payments: These are payments made by the borrower to the lender and these payments comprise…
Q: If the required return on this stock is 16 per cent, what is the current share price?
A: The stock can be valued using the Gordon Dividend model. As per the Gordon model, the value of a…
Q: Can you please help me solve for the Return on Investment and Break-Even Point based on the data…
A: Return on Investment measures of the performance of an Investment. It tells us the return we have…
Step by step
Solved in 2 steps
- The ABC corporation pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 2% for each year of service of the average of the employee's earnings for their last 2 years on the job. Mark retires at age 65 with 15 years of service. His earnings for his last 2 years were $56,697 and $55,530. What is his annual pension benefit? Round your answer to the nearest dollar.Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Employee Annual Payment Date of First Payment Tinkers $ 40,000 12/31/24 Evers 45,000 12/31/25 Chance 50,000 12/31/26 Required:1. Compute the present value of the pension obligation to these three employees as of December 31, 2021. Assume a 10% interest rate.2. The company wants to have enough cash invested at December 31, 2024, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to…CARISIC Co. has established a defined benefit pension plan for a loan officer. Annual payments under the pension plan are equal to the loan officer’s highest lifetime salary multiplied by 3% multiplied by number of years with the entity. On December 31, 2019, the loan officer had worked for 15 years. The current salary is P500,000. The loan officer is expected to retire in 5 years and the salary increases are expected to average 4% per year during that period. The employee is expected to live for 6 years after retiring and will receive the first annual pension payment one year after retirement. The discount rate is 12%. The relevant present value factors are 4.111 for an ordinary annuity of 1 at 12% fir 6 periods and 0.567 for 1 at 12% for 5 periods. The future value factor of 1 at 4% for 5 periods is 1.217. What is the defined benefit obligation on December 31, 2019? 225,000 524,460 608,500 638,269 answer not given
- A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 3% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.3% for each year before 65 that they retire. Russ retires at age 61 with 29 years of service. If his salary upon retirement is $76,763, what is his annual pension benefit? Round your answer to the nearest dollar.Computing ABO, PBO Mallard Company sponsors a pension plan with the following pension benefit: Benefit paid at each year-end during retirement = (Number of years worked x Annual salary at retirement) +25 Employee Josie began work with the company and received credit for service as of January 1 of Year 1. Josie is expected to work a total of 30 years with an annual salary at retirement of $100,000. She is expected to draw 10 years of retirement benefits. The discount rate is 10%. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. a. Compute the PBO on December 31 of Year 10, if Josie's current salary is $30,000. b. Compute the ABO on December 31 of Year 10, if Josie's current salary is $30,000.Seanna O'Brien receives pension payments of $3, 100 at the end of every six months from a retirement fund of $ 47,000. The fund earns 8% compounded semi - annually. (a) How many payments will Seanna receive? (b) What is the size of the final pension payment?
- Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 14 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Employee Tinkers Evers Annual Payment $ 27,000 Date of First Payment 12/31/2027 32,000 37,000 12/31/2028 12/31/2029 Chance Required: 1. Compute the present value of the pension obligation to these three employees as of December 31, 2024. Assume an 11% interest rate. 2. The company wants to have enough cash invested at December 31, 2027, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually. The first contribution will be made on December 31, 2024. Compute the amount of this required annual…Bernie Bird Co.'s retirement plan provides for a lump sump benefit. equal to the final monthly salary multiplied by the years of service, to employees who have reached the age of 60 and have rendered at least five years of service. The year of employment and the year in which the employee reaches the age of 60 are counted as full years. Mr. Wooten, who has just turned 50, was employed during the year. Mr. Wooten's current monthly salary is P60,000 and this is expected to increase by 2% per year. The discount rate is 10%. How much are the (1) projected lump sum benefit to be received by Mr. Wooten on his retirement date and (2) current service cost for the year? O 804,540:28,199 O 718,360:27,664 O 826,940:30,036 O 732,340:28, 199Ralphearns $200, 000 per yearat Virtual Reality Solutions LLC,where he has worked for 10years. Virtual Reality Solutionssponsors a defined benefit planequal to 2% per year of service ofthe employees finalcompensation. At the currenttime, what is Ralph's retirementpayable from the defined benefitplan? a. )$40, 000 per year b.)$4, 000 per month or $48, 000 peryear c.)$20, 000 per year d.)$100, 000 per year
- w the summary page so Upon his retirement earlier this year, Salvatore received a $42,000 retiring allowance from the company for whom he had worked since 1980. He joined his company's registered pension plan two years after he was hired. If Salvatore accumulated $9,640 in RRSP contribution room for this year and he has an RRSP carryforward of $16.500 from previous years, what portion of his retiring allowance represents the NAXINUM amount he can rollover into his RRSP? Oa) $ 9,640 Ob) $ 26,140 can easy go Oc) $ 35,000Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.3% x Service years × Final year's salary Stanley Mills was hired by Clark at the beginning of 2005. • Mills is expected to retire at the end of 2049 after 45 years of service. His retirement is expected to span 15 years. At the end of 2024, 20 years after being hired, his salary is $81,000. • The company's actuary projects Mills's salary to be $280,000 at retirement. The actuary's discount rate is 8%. For all requirements, round final answers to the nearest whole dollars. Do not round intermediate calculations. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Estimate the amount of Stanley Mills's annual retirement payments for the 15 retirement years earned as of the end of 2024. 2. Suppose Clark's pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine…Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to 1.2% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $80,000. The company’s actuary projects Mills’s salary to be $270,000 at retirement. The actuary’s discount rate is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Estimate the amount of Stanley Mills’s annual retirement payments for the 15 retirement years earned as of the end of 2021.2. Suppose Clark’s pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine the lump-sum equivalent as the present value as of the retirement date of annuity payments during the retirement…