Regarding the calculation of minimum distributions

Assignment Help Financial Management
Reference no: EM131523940

Which of the following is not correct regarding the calculation of minimum distributions?

(a) The life expectancy factor used to calculate the minimum distribution during the life of the participant or account owner is recalculated each year if the uniform table is used.

(b) The life expectancy factor used to calculate the minimum distribution for an inherited IRA is recalculated each year if the spouse is the beneficiary.

(c) The life expectancy factor used to calculate the minimum distribution for an inherited IRA in which the two beneficiaries are age 20 and age 30 will be based on the age of the older of the two beneficiaries.

(d) The joint table will always be used during life to determine the life expectancy factor when the spouse is more than ten years younger, regardless of who the beneficiary is on the account.

Reference no: EM131523940

Questions Cloud

Best estimate of the future annual returns : Using Blume’s formula, what is your best estimate of the future annual returns over 5 years? 11 years? 22 years?
What is payback period and profitability index of project : What is the payback period of the project? What is the profitability index of the project?
Europe working as photographer for life magazine : mistake was made because she was in Europe working as a photographer for Life Magazine.
What is the difference between this bond ytm and ytc : What is the difference between this bond's YTM and its YTC?
Regarding the calculation of minimum distributions : Which of the following is not correct regarding the calculation of minimum distributions?
Protected from creditors by federal bankruptcy : Which of the following assets is not protected from creditors by federal bankruptcy?
All respects except for their capital structure : ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure.
Use the balanced scorecard to evaluate local clothing shop : How you would use the balanced scorecard to evaluate a local clothing shop.
The higher the correlation coefficient between two stocks : In the statement, "The higher the correlation coefficient between two stocks, the greater will be the benefit from diversifying by combining the two stocks in a

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield to maturity of the? bonds

What is the yield to maturity of the? bonds?

  Types of loans requires periodic repayments

Which one of the following types of loans requires periodic repayments, each of which reduces the principal balance?

  Any decrease in value in the underlying asset

The balanced scorecard and dashboard reports look at what is most important to the success of the organization. An investor who goes long in a futures contract will _____ any increase in value of the underlying asset and will _____ any decrease in va..

  Calculate the value of the stock today

Suppose the dividend today, Do, is $2.50, and the growth rate (g) is expected to be 25% for the next 3 yrs, followed by a normal growth rate (g) of 6% thereafter. Assume the investors require 13%, rs. Calculate the value of the stock today, Po. This ..

  Refurbishing one of its hotels at cost

Hathaway, Inc., a resort company, is refurbishing one of its hotels at a cost of $6,794,207. Management expects that this will lead to additional cash flows of $1,560,000 for the next six years. What is the IRR of this project? Should the Firm accepr..

  Assets must grow at the same rate as projected sales

Broussard Skateboard's sales are expected to increase by 20% from $9.0 million in 2015 to $10.80 million in 2016. Its assets totaled $3 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as pro..

  What is probability of up movement in risk-neutral world

The current price of a non-dividend-paying biotech stock is $140 with a volatility of 25%. The risk-free rate is 4%. For a 3-month time step: What is the percentage up movement? What is the percentage down movement? What is the probability of an up m..

  Same discount rate to determine the bond values

A 6% coupon bond, an 8% coupon bond, and a 10% coupon bond, all with the same maturity, bond covenants and other provisions, are issued by the same firm under equal market conditions; therefore investors use the same discount rate to determine the bo..

  The yield to maturity of the bond decreases

A bond that is currently sold at par will mature in two years. The face value of the bond is $1,000. The coupon rate of the bond is 8%. Suppose that the yield to maturity of the bond decreases by 2%, how much (in dollar amount) the bond price will in..

  Her arithmetic average return on this investment

Joanne invested $15,000 six years ago. Her arithmetic average return on this investment is 8.72 percent, and her geometric average return is 8.50 percent. What is Joanne's portfolio worth today?

  The annuity payments come at beginning of each period

an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due).

  Forecast brous sards additional funds needed for coming year

The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 60%. Use the AFN equation to forecast Brous-sard's additional funds needed for the coming year.

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