1) Your uncle has $300,000 invested at 7.5%, per annum and he now wants to retire....

1) Your uncle has $300,000 invested at 7.5%, per annum and he now wants to retire. He wants to withdraw $35,000 at the beginning of each year, starting immediately. He also wants to have $25,000 left to give Katya when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end?

a. 15

b. 13.5

c. 13.5

d.11.9

2.

Which statements is TRUE?

a, firms residual earnings technically belong to preferred shareholder

b. Corporations generally pay all their earnings as dividends.

c.Corporations typically reinvest none of their earnings to enhance future earnings.

d. The only cash flows that an investor will receive until he or she sells the stock will be the dividends

Expert Solution

The answers are as follows:

jeff jeffy answered 1 year ago

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