Understanding Business
12th Edition
ISBN: 9781260092332
Author: Nickels
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter D.4, Problem D.4BQ
Summary Introduction
To determine: Whether the decision to save from early age for the after retirement benefit help to diversify the portfolio of dreams after retirement.
Introduction: Retirement planning refers to the plan that every individual make to spend life after the full time work life is complete. It requires appropriate planning of funds and resources required to spend a happy life after retirement from work.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Now that we've looked at the operations of the stock market, let's review how well we can predict the future. If you had an aunt who offered to buy you 50 shares of any stock you desired, which company would you choose, and why would you select them? Part of your post should address 1. the current price and 2. if you intend to hold on to the stock for a long time or see it as a short term investment.
While I won't be in touch to remind you, write down the particulars of stock somewhere and check it out around the same time next year... see how you did "in the market"!
If you were to add a capital investment of $500,000 and a loan amount for $250,000. Can you provide the statements including those?
Assuming you are an entrepreneur, the first 4 years of operations went smooth and income is flowing, but on the year five of your business you realized, cash flowing in the business aren’t enough already to meet the business short term obligations, what risk you did not manage properly.
Choose from the following
Economical Risk
Competitive Risk
Financial Risk
Technological Risk
Chapter D Solutions
Understanding Business
Ch. D.1 - Prob. D.1AQCh. D.2 - Prob. D.2AQCh. D.2 - Prob. D.2BQCh. D.2 - Prob. 1TPCh. D.2 - Prob. 2TPCh. D.2 - Prob. 3TPCh. D.4 - Prob. D.4AQCh. D.4 - Prob. D.4BQCh. D.4 - Prob. D.4CQCh. D.4 - Prob. 4TP
Ch. D.4 - Prob. 5TPCh. D.4 - Prob. 6TPCh. D.4 - Prob. 7TPCh. D - Prob. 1CECh. D - Prob. 2CECh. D - Prob. 3CECh. D - Prob. 4CECh. D - Prob. 1CTCh. D - Prob. 2CTCh. D - Prob. 3CTCh. D - Prob. 4CTCh. D - Prob. 1DCSCh. D - Prob. 2DCSCh. D - Prob. 4DCSCh. D - Prob. 1PPTCh. D - Prob. 2PPTCh. D - Prob. 3PPTCh. D - Prob. 5PPT
Knowledge Booster
Similar questions
- Assume you are selling financial services to consumers. You have identified a couple in their forties as qualified prospects. They are interested in retirement planning. What are three questions you would ask them during your initial meeting with them?arrow_forwardHow does net cash flow differ from net income and why is that difference relevant to financial decision making?arrow_forwardIf a person in the 32 percent tax bracket makes a deposit of $6,200 to a tax-deferred retirement account, what amount would be saved on current taxes?arrow_forward
- Perform the task below. Suppose you have savings in the bank that you want to invest in stocks and bonds instead of setting up in a new business. Write one to two paragraphs discussing what method you can use to make the investment and explain the reasons for your decision.arrow_forwardGiven that you have excess funds, where will you invest the funds and why? (The choices are time deposits, corporate bonds and stocks. Consider risk return trade off in your investment decision)arrow_forwardIf you have the following information Discounted Cash Flow Year Cash Flow Discounted Cash Flow 0 $ - 22 million 1 $2 million 2 $2 million 3 $8 million 4 $8million 5 $12 million The discount rate is % 5 Calculate the NPVarrow_forward
- What should you consider when looking for a financial planner? o finding one who consistently loses money for his or her clients how much the financial planner has saved for his or her retirement how much he pays you for working with him or her your cost of doing business with him or herarrow_forwardWhy is it important to hold some liquid and some illiquid assets?arrow_forwardWith the success of your business, you are ready to establish a storefront. However, you do not have the necessary funds to acquire the building and pay the necessary rent. You are considering borrowing a short-term note from a bank for $130,000. Required part B. Research the lending practices of a local bank. Determine the interest rate charged for a $130,000 loan. What collateral does the bank require to secure the loan? Determine your overall payback amount if you were to repay the loan in less than one year. Choose either a payback with periodic payments or all at the end of the loan term and compare the outcomes. After conducting your research, would you consider borrowing the money? What positive and negative outcomes accompany borrowing the money? Instead of borrowing on a short-term note, you are thinking on borrowing $130,000 and signed a 5-year, note payable with a 12% interest rate. Each annual payment is in the amount of $34,920 and payment is due each Dec. 31. What is…arrow_forward
- Think about the factors involved in each of the situations below. Solve the problems by applying the concepts in Chapter 18. Where can your firm find financing? Prepare your initial discussion by providing a detailed response with at least three paragraphs. Your company needs a new copy machine quickly. The high-volume, multifeatured model you want costs $3,000, but your small business doesn’t have that much cash on hand right now and doesn’t want to borrow at this time.arrow_forwardRead the article “How To Overcome The Fear Of Investing In The Stock Market” on the College Investor website and answer the following questions. Please provide explanations for your answers. Do you fear investing? If yes or no, explain why. Can an effective asset allocation strategy assist in overcoming the fear of investing? In your opinion, which is worse – not investing at all or investing close to retirement?arrow_forwardExplain how economic growth affects the valuation of a stock. How are the interest rate, the required rate of return on a stock, and the valuation of a stockrelated? Assume that the expected inflation rate has just been revised upward by the market. Would the required return by investors who invest in stocks be affected? Explain.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning