What will be the value of her after-tax investment

Assignment Help Finance Basics
Reference no: EM132013474

Charlotte lives in Montreal and earns $51,000 of taxable income. From her excess cash flow she will invest $1,000 today and $250 at the end of every month for the first six months of the year. She expects to earn a return of 3%, compounded monthly, and taxable at her marginal tax rate (see Table A at the end of the case study for combined Federal and Quebec tax rates). What will be the value of her after-tax investment in one year's time?

a) $1,611.37

b) $2,539.19

c) $2,562.60

d) $4,045.10

Reference no: EM132013474

Questions Cloud

Determine the issues or message : Determine the issues or message (e.g., telehealth impact on your practice) you would to discuss with your legislator(s). American Nurses Association Legislative
Present value and shareholder wealth maximization : What is the relationship between the concepts of net present value and shareholder wealth maximization?
How much of a mortgage loan will the couple need : How much of a mortgage loan will the couple need?
What types of bias researchers should have been concerned : For this week's forum, read through the article that you chose for your research paper. In your initial post, discuss what types of bias the researchers.
What will be the value of her after-tax investment : What will be the value of her after-tax investment in one year's time?
What is an effective annual rate : The sticker price is $35,000. Provincial sales taxes of 15% would apply. Amal has $5,000 to use as a down payment. The bank will charge her 7.75%
Describe the key management incentive program : Describe the Key Management Incentive Program (KMIP) and how it would be impacted by your new organizational structure.
Daily collections average : How much value would be added to a firm that could permanently reduce its collection period by two days if daily collections average $10,000
Is it necessary to actually adjust for risk : Is it necessary to actually adjust for risk? Isn't awareness of risk in cash flows sufficient? Explain

Reviews

Write a Review

Finance Basics Questions & Answers

  The ebk is a product of the department of homeland security

The EBK is a product of the Department of Homeland Security's

  Listed spot and futures prices of a treasury

On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6. You sold $100,000 par value Treasury bonds and purchased

  Find the net present value of the cash flows

Use a spreadsheet to find the net present value of these cash flows for a discount rate of 3%.

  An investment project costs 10000 and has annual cash

an investment project costs 10000 and has annual cash flows of 2600 for six years. what is the discounted payback

  The installments will increase by 5 percent per year

Suppose two athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal installments. In the other case, we're told that the $80 million will be paid in 10 installments, but the installments ..

  Relationship between finance and accounting

Write a paper of 500-750 words that explains the relationship between finance and accounting, and how they operate to determine financial viability within a health care organization. Minimum of three references in APA style guidelines

  Weisbro and sons common stock sells for 23 a share and pays

weisbro and sons common stock sells for 23 a share and pays an annual dividend that increases by 4.5 percent annually.

  What does it mean for the trials to be independent

What does it mean for the trials to be independent in a binomial experiment?

  How will the new inventory system impact your recommendation

Which option should you choose? (Hint - value the store's ongoing operations as a perpetuity) How will the new inventory system impact your recommendation?

  Describe the organizational forms a company

Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantges of each form.

  Manager of a health club franchise believes

Based on data from the district office, a manager of a health club franchise believes that 32% of the members join in the winter, 24% join in the spring

  What is the value of the ytm

If the YTM is 6%, what is the value of this bond? There is another bond with 15 year to maturity with a coupon rate of 6%. This coupon is paid annually. If the current price of the bond is $1,200, what is the value of the YTM?

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