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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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:…
Your company just hired a Junior Financial analyst with a net
salary of 18,000 Dh / month.
The company agreed to offer a retirement scheme for the
employee, where both the employer and employee contribute 6%
of the gross salary to CIMR (Retirement scheme).
Prepare a payslip indicating:
1. Gross Salary
2. CNSS (Social Security): both employee and employer
shares
3. AMO (Mandatory insurance): both employee and employer
shares
4. CIMR (Retirement scheme): both employee and employer
shares
5. What is the total cost incurred by the company?
An employee contributes $16,900 to a 401(k) plan each year, and the company matches 10 percent of this annually,
or $1,690. The employee can allocate the contributions among equities (earning 14 percent annually), bonds (earning
7 percent annually), and money market securities (earning 5 percent annually). The employee expects to work at the
company 15 years. The employee can contribute annually along one of the three following patterns:
Equities
Bonds
Money market securities
Option 1 Option 2
70 %
30
0
100%
60%
35
5
100%
Option 3
50%
40
10
100%
Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions
remain constant over the 15 years. (Do not round intermediate calculations. Round your answers to the nearest
whole number. (e.g., 32))
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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