Tara wants to minimize her need for student loans. Identify three factors Tara should consider to minimize her student loans, bu

Answer:

c. Typically, they illustrate the elements that must be developed to generate the final deliverables.

Explanation:

The Work Breakdown Structure (WBS) serves as a method employed by project managers to systematically break down deliverables into smaller parts. It provides a structure that can be utilized for additional planning tasks. These are presented in an indented outline layout.

Response:

a) $639,610.76

b) $422,923.12

c) $0.00

d) $875,351.49

Clarification:

a) What deposit amount should she make today?

To determine this, we utilize the formula for calculating the present value of an ordinary annuity as follows:

PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)

Where;

PV = Amount to be deposited today =?

P = annual withdrawal = $95,000

r = interest rate = 4% = 0.04

n = total years = 8

Substituting the values into equation (1) provides:

PV = $95,000 × [{1 - [1 ÷ (1 + 0.04)]^8} ÷ 0.04]

PV = $95,000 × 6.73274487495041

PV = $639,610.76

Thus, she needs to deposit approximately $639,610.76 today.

b) What will the account balance be right after the third $95,000 withdrawal?

Note: Refer to Part A from the attached Excel document for this calculation.

This will show the ending balance at Year 3, which indicates $422,923.12.

c) What will the account balance be after all withdrawals, including the last one in 8 years?

Note: Also refer to Part A from the attached Excel document for this calculation.

The result will be the final balance at Year 8, showing $0.00.

d) Now, if you opt to drop out of school today and forgo all withdrawals while retaining your aunt’s deposit in the account accruing at 4.00%, what would your total be at the end of 8 years?

Note: See Part B from the attached Excel document for this calculation.

The total will be the closing balance at Year 8, which indicates $875,351.49.

The substantial amount arises because no withdrawals are made each year, allowing the principal to accumulate interest annually on the final balance.

Answer:

Option (D) is the right choice.

Explanation:

According to the Modigliani-Miller proposition, the cost of equity will adjust in a way to accommodate its debt obligations.

Cost of equity:

= WACC for an all-equity firm + (WACC for an all-equity firm - Cost of debt ) × (Debt-to-equity ratio)

Initially, when no debt was present,[ [TAG_20]]

WACC = cost of equity = 10%

The levered cost of equity:

= 10% + ( 10% - 6%) × 0.2

= 10.8%

Thus, Taggart's levered cost of equity would be approximately 11%.

A sampling plan can be viewed as a strategy involving intelligent steps that allow a researcher to select a sample from the general population to assess answers to the current questions. In this situation, a company has developed innovative photocopy machines, and the research task is to estimate the demand for these machines from businesses in Cleveland. The sampling method that could be utilized involves probability sampling techniques, specifically Simple Random Sampling and Systematic Sampling. The defined sample frame comprises the organizations in Cleveland, which should be categorized into small, medium, and large based on their employee numbers. The researcher must evaluate each organization, collecting data through simple random sampling where every organization is assessed. Using systematic sampling, business in Cleveland can be listed for analysis with an arbitrary selection for examination. Given that every organization needs to be evaluated and categorized, a structured approach using Simple Random Sampling and Systematic Sampling is required.

Respuesta: a

Explicación: