Family limited partnership is one option in estate planning

Assignment Help Financial Management
Reference no: EM131063129

A family limited partnership is one option in estate planning that is effective in certain situations. In this discussion, you explore situations appropriate for this option and consider the pros and cons.

Describe a scenario in which you would use a family limited partnership. Then detail one or two advantages and one or two disadvantages of using a family limited partnership in estate planning for this situation. Be specific.

Reference no: EM131063129

Questions Cloud

What is the forward price of gold with delivery : The current price of gold is $1,600 per troy ounce. There are no storage costs. The risk free rate of interest is 5% continuously compounded. What is the forward price of gold with delivery in 3 months? Calculate the cost of a collar, with 3 months t..
Financial ratios and common-size financial statements : State why Walmart is a competitor of Target. Identify the reason that financial ratios and common-size financial statements are more important when contrasting the financial performance of Target to Walmart than the financial amounts reported on the ..
Calculate your payment and effective annual rate : Suppose Mary Jane wishes to take our a 30-year interest-only mortgage loan of $200,000 with an interest rate of 8%. How much will Mary Jane pay the lender EACH MONTH? You are considering a 5%, 15-year mortgage with zero points. Noting that mortgage p..
Required return that brigham common stock should provide : Brigham Jewellery Corporatio9n common stock has a beta, B, of 1.8. The risk free rate is 5%, and the market return is 16%. Determine the risk premium on Brigham common stock should provide. Determine the required return that Brigham common stock shou..
Family limited partnership is one option in estate planning : A family limited partnership is one option in estate planning that is effective in certain situations. In this discussion, you explore situations appropriate for this option and consider the pros and cons.
Calculated from the capital asset pricing model : Investment in portfolio A has a standard deviation of 9%, while investment in portfolio B has a standard deviation of 14%. In order to tolerate the increased risk, what would you as an investor expect? The required rate of return for an investment ca..
Prior to consideration of working capital : A potential project with is expected to generate the following revenue per annum for the next 6 years with a after-tax operating cash flow margin of 20% (prior to consideration of working capital) from new business with a government agency. Now consi..
What are the NPV and IRR of the project : Butler International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 –$ 950,000 1 285,000 2 345,000 3 415,000 4 255,000 All cash flows will occur in Erewhon and are expressed in dollars. ..
About the present value of an annuity : Carrie and Miranda earn the same salary. However, Miranda has been far more financially responsible. She pays her bills on time and pays off her credit card debt quickly. Carrie had been less financially responsible. She often buys too many shoes and..

Reviews

Write a Review

Financial Management Questions & Answers

  What is this employee benefit worth to you today

Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today?

  As part of its international expansion program acme a us

as part of its international expansion program acme a u.s. multinational enterprise mne is currently in the planning

  Explain how mutually exclusive projects influence

Please define and describe in your own words the benefits and disadvantage of using payback period, NPV and IRR as means for evaluating project. Please explain how mutually exclusive projects influence these analysis tools.

  Describe how lenders might price loans to the borrowers

Suppose that four college students check their FICO scores and discover the information listed below. Describe how lenders might price loans to the borrowers with lower scores versus the borrowers with higher scores in terms of rates and fees charged..

  Calculate their after tax cost of debt expressed

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semi annual interest payments. Bond A has a coupon rate..

  The incremental revenues for this situation

Carry-ALL plans to sell 1,300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. Variable costs are projected to be $20 per unit. Michael Co. offers to pay $23,900 to buy 680 units from Carry-ALL. Total fixed costs are $7,00..

  Has eden identified strategies to mitigate identified risk

Has Eden identified all strategies to mitigate the identified risk - has Eden correctly identified the correct people to consult in the development of the strategies? Justify your response.

  Important goal for healthcare organizations

We learned that market share is an important goal for healthcare organizations. What are some examples of how market share may be improved, or increased?

  Find the total amount for accumulation of discount

A 10-year bond with semi-annual coupons is bought at a discount to yield 9% convertible semi-annually. If the amount for accumulation of discount in the next-to-last coupon (which was denoted by P19) is $8, find the total amount for accumulation of d..

  Using the present worth on incremental investment

It is estimated that the annual heat-loss cost in a small power plant is $5,200. Two mutually exclusive proposals have been formulated that will reduce the loss. If the interest rate is 8% and the plant will benefit from the reduction in heat loss fo..

  What is default risk premium on corporate bond

Default Risk Premium A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 7.5%. Assume that the liquidity premium on the corporate bond is 0.35%. What is the default risk premium on the corporate bond?

  How big will the balloon payment be

You have just arranged for a $1,740,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 7.4 percent, and it calls for monthly payments over the next 20 years. However, the loan has an eight-year balloon payment, ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd