Sunday, May 24, 2020
COMPREHENSIVE CASE SOLUTIONS Ã¢â¬â CHAPTERS 12 - 21 NOTE: The cases related to these solutions are posted on our website www.mcgrawhill.ca/olc/buckwold. They are not printed in the text. Solution to COMPREHENSIVE CASE ONE Seacourt Restaurants All of the issues in this case have been examined in depth in problems and cases of previous chapters and therefore the following solution briefly refers to the main issues of each segment. Where applicable, tax rates are assumed to be: Individual Corporation - dividends (eligible) - dividends (ineligible) - other income - SBD income - ABI over $500,000 - investment income 28% 33% 45% 15% 25% 44 2/3% (38 + 6 2/3) Incorporation of Proprietorship The primary benefit of incorporation is the ability toÃ¢â¬ ¦show more contentÃ¢â¬ ¦This still leaves the old corporation with a value equal to $1,140,000 plus the value of the other assets substituted for the property transferred out. While certain steps could be taken to perhaps alleviate this problem, they are rather complex and beyond the scope of this question (see section 55). However, by tracing the process of moving out the land and building, the student will see the roadblocks that appear. A much simpler approach is to transfer the business assets (inventory, equipment and goodwill) to a separate entity (new corporation or partnership) that is owned by the existing corporation and Spud. Whether the new entity is a corporation or partnership, the transfer of the business assets to it will automatically be at fair market value unless an elected amount is chosen for tax purposes. As Court will continue to own 80% of the business, it is unlikely that he would be prepared to incur a tax liability on the full value. Therefore, the election option is recommended. As Spud has no money to contribute to the new entity, one possibility is the following: A new corporation is organized by issuing 80% the of common shares to the Courts existing corporation and 20% to Spud in exchange for a nominal contribution of capital (say $8 for Court and $2 for Spud). The new corporation buys the business assets for $1,140,000 (using the elected values for tax purposes) and pays Courts corporation with the required combination of debt and preferredShow MoreRelatedThis Is Solution to Chapter Problems and Key Concept Questions13492 Words Ã |Ã 54 PagesBuckwold and Kitunen, Canadian Income Taxation, 2010-2011 Ed. CHAPTER 10 INDIVIDUALS: DETERMINATION OF TAXABLE INCOME AND TAXES PAYABLE Review Questions 1. Briefly explain the difference, for individuals, between net income for tax purposes and taxable income. 2. Explain the difference between an allowable capital loss and a net capital loss. 3. Describe the tax treatment of net capital losses. 4. Explain how a non-capital loss is created and how it is treated for taxRead MoreEbooks Solution Manuals and Test Banks for Text Books19223 Words Ã |Ã 77 Pagesregarding Solutions and Test Bank for courses. We hope that you people will like our service and get better grades. Please Contact us @ : Ã firstname.lastname@example.org Ã email@example.com Use CTRL + F to search the titles you looking for , if the title you searching is not in the list, do not worry, send us an email at firstname.lastname@example.org and we shall try to provide you requested data.Ã =============================================================== Jr. 12 Solution Manual Ã ¡ArribaRead MoreA Discussion on the Badges of Trade1433 Words Ã |Ã 6 Pagespresence or absence of common features or characteristics of trade. Examples include the nature of the subject matter being exchanged, the length of ownership, and the reason for the transaction.The report of the Royal Commission on the Taxation of Profits and Income in 1955 reviewed that case law and identified six badges . However we will discuss only three of the six badges. Supplementary work on or in connection with the property realized Firstly weÃ¢â¬â¢ll discuss Supplementary work on orRead MoreChapter 1 Understanding and Working with the Federal Tax Law Solutions to Problem Materials6022 Words Ã |Ã 25 PagesCHAPTER 1 UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW SOLUTIONS TO PROBLEM MATERIALS Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Learning Objective LO 1 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 3 Topic Revenue neutrality Controlling the economy Encouraging industries Research and development expenditures Social considerations Earned income credit CharitableRead MoreAccounting Software For A Business Essay1257 Words Ã |Ã 6 Pagesimplement a total business solution which supports major functionalities of a business. Enterprise resource planning (ERP) software is designed to meet this need, and has been widely adopted by organizations in developed countries. Meanwhile, ERP is beginning to appear in many organizations of developing countriesÃ¢â¬ . In Australia small and medium enterprises does not comply with the accounting principles because they have no legal obligation to do so, but they must comply with taxation provisions. The researchRead MoreSyllabus: Business Communication and Report Writing2672 Words Ã |Ã 11 Pages |100 |4 | | |Computer and Information Technology |100 |4 | | |Taxation in Bangladesh |100 |4 | | |Business Statistics (In English) |100Read Moreintermediate accounting 2 test bank Essay8318 Words Ã |Ã 34 PagesIntermediate Accounting Kieso 15th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://www.solutionsmanualtestbanks.com/2013/05/intermediate-acc ounting-kieso-15th-edition-test-bank.html Intermediate Intermediate Intermediate Intermediate Accounting Accounting Accounting Accounting Kieso Kieso Kieso Kieso 15th Edition Test Bank 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank Read MoreNew York State Department Of Taxation And Finance1919 Words Ã |Ã 8 Pagesgovernments. The revenue collected from taxes goes up to $1 billion annually , but the amount was still low and the process of collection in Department of Taxation and Finance (DTF) needed improvements. The DTF of New York State worked with IBM to use prescriptive analytics in the development of a more effective approach to tax collection. The system optimizes the collection procedures of agents with appreciation to maximizing long-term incomes, while taking into account the complex dependencies amongRead Moreglobal investor Essay2396 Words Ã |Ã 10 PagesBusiness University of Southern California Global Investors, Inc. Teaching Note Purpose of Case This case was written to illustrate a transfer pricing problem in a service setting, here an investment management company. The issues and solutions are not as obvious as in a manufacturing setting where one division produces parts that are transferred to another division for further processing. The case is a disguised version of a real conflict in which emotions were running high. The caseRead MoreSolution Manual, Test Bank and Instructor Manuals34836 Words Ã |Ã 140 Pagesany solution manual, testbank for testbooks from the list, do contact us anytime, we provide competitive prices and fast delivery after payment done. Contact us: email@example.com smtbportal(at)gmail(dot)com 2010 Corporate Partnership Estate and Gift Tax with HR Block TaxCut 4e Pratt Kulsrud Solution Manual 2010 Corporate Partnership Estate and Gift Tax with HR Block TaxCut 4e Pratt Kulsrud Test Bank 2010 Federal Taxation with HR Block TaxCut 4e Pratt Kulsrud Solution Manual 2010
Wednesday, May 13, 2020
Sample details Pages: 3 Words: 982 Downloads: 1 Date added: 2019/03/28 Category Society Essay Level High school Tags: Discrimination Essay LGBT Essay Did you like this example? Before I get too far I want to talk about the LGBT acronym. Lgbt is the more commonly used term but the official term is actually LGBTIQCAPGNGFNBA this stands for Lesbian, Gay, Bisexual, Transgender, Intersex, Queer, Curious, Asexual, Pansexual, Gender-non-conforming, Gender-Fluid, Non-binary, and Androgynous. I believe that equality is being able to be who you are without the fear of judgment or persecution (as long as you are not causing anyone else any harm). People should not have to worry about getting jumped because of their race, gender, and/or sexuality. I believe that everyone has the right to representation in the government, free good quality education. I believe that everyone has the right to a voice to speak out for what they believe in. I believe that every person of every country is entitled to basic human rights and protections. But sadly the lgbt+ community has been the target of hatred and violence for hundreds of years. They have been killed and tortured for just being who they are. For this project I have decided to focus on the legal side of the lgbt+ discrimination, starting with colonial America all the way to modern day. DonÃ¢â¬â¢t waste time! Our writers will create an original "Legal discrimination against the LGBT community" essay for you Create order In 1624 Richard Cornish, an English ship captain was hung for an alleged homosexual act with an indentured servant, William Couse. the act in question was actually a rape, now most of the time they would handle a Ã¢â¬Å"straightÃ¢â¬ rape very differently, most times there would be fines and public wipings for both parties, sometimes the attacker would be forced to leave the colony, and the most shocking thing is that if the victim was not married they would often be encouraged to marry their attacker. Although this is sodomy and the punishments for where often way more dramatic than some other crimes, and in 1636 in Massachusetts, Reverend John Cotton, the preeminent minister and theologian of the Massachusetts Bay Colony. Proposed to include Ã¢â¬Å"sexual relations between womenÃ¢â¬ into the definition of sodomy for the first time, and if you do not know what sodomy is, sodomy is sexual intercourse involving anal or oral. Only is 1777 Thomas Jefferson revised Virginia law to m ake the punishment of sodomy mutilation (cutting off or injuring a body part of a person so that the part of the body is permanently damaged, detached or disfigured) rather than execution. From around 1880-1920 America experienced an influx of immigrants trying to come to America, by 1920 4 million immigrants had entered the united states. Buring this time the government put in laws to help control the number of people in the USA, such as in 1917 lawmaker put into effect a ban that prevented persons with abnormal sexual instincts from coming into the United States. In 1947 under President Trumans national security loyalty program, the state department started firing suspected homosexuals. By 1955 anti-gay Ã¢â¬Å"witch huntsÃ¢â¬ caused more then 1200 people to lose their jobs with the federal government, going along with this president Eisenhower issued executive order #10450, this order authorized broad categories of American citizens identified as Ã¢â¬Å"threatsÃ¢â¬ to national securityÃ¢â¬âincluding those with criminal records, alcoholics, and Ã¢â¬Å"sex pervertsÃ¢â¬ Ã¢â¬âto be excluded or terminated from federal employment. Latter many states and local government adopted similar policies. Only in 1995 did President Bill Clinton sign an executive order forbidding the denial of security clearances on the basis of sexual orientation. However, Being closeted and vulnerable to blackmail was still a possible grounds for a clearance denial. With the first March on Washington for Lesbian and Gay Rights, in 1979, over 100,000 people joined the protest. The march nationalizes the gay movement, which had been more focused on local struggles in the past. With the closing section of the welcome program of the march, authored by Allen Young, you can really feel the vide of the whole march. Today in the capital of America, we are all here, the most liberated and the slightly repressed; the butch, the femme and everything in-between; the androgynous; the monogamous and the promiscuous; the masturbators and the fellators and the tribadists; men in dresses and women in neckties; those who bite and those who cuddle; celebates[sic] and pederasts; diesel-dykes and nelly queens; Amazons and size queens, Yellow, Black, Brown, White, and Red; the shorthaired and the long, the fat and the thin; the nude and the prude; the beauties and the beasts; the studs and the duds; the communes, the couples, and the singles; pubescents and the octog enarians. Yes, we are all here! We are everywhere! Welcome to the March on Washington for Lesbian and Gay Rights! on June 26, 2015, in a 5-4 decision the U.S. Supreme Court ruled that all state bans on same-sex marriage and on recognizing same-sex marriages performed in other jurisdictions are unconstitutional under the equal protection clauses of the Fourteenth Amendment to the U.S. Constitution. Equal marriage is something that LGBT+ citizens have been fighting for since the Ã¢â¬â¢70s. There are lots of groups looking to help fight for gaining lgbt+ rights in America such as a group called Gay and Lesbian Advocates and Defenders (GLAD). GLADÃ¢â¬â¢s main focus is to abolish outdated laws and stereotypes that denied LGBT+ people basic protections and opportunities of daily life, one of the cases that they participated in is Good v. Iowa Department of Human Services. IowaÃ¢â¬â¢s Medicaid program provides coverage for medically essential care for an extensive variety of medical conditions. However, Iowa denies transgender humans Medicaid coverage for a gender-affirming surgical operation to treat gender dysphoria, a medical situation only experienced by human beings who are transgender, even though Medicaid coverage is provided for the same surgical procedures for other medical conditions. This discriminatory ban on coverage has no basis in medical science and has been uniformly condemned through leading clinical organizations. The case challenged the ban as a viol ation of the Iowa Civil Rights Act (Ã¢â¬Å"ICRAÃ¢â¬ ) and the Iowa ConstitutionÃ¢â¬â¢s equality guarantees. Sadly the case was dismissed.
Wednesday, May 6, 2020
AP World HistoryMilo Romney Caesar Augustus10/27/12 What happens when a man tries to take over a republic? Well most of the time that man gets stabbed several times by his friends and colleagues. This is at least what happened to the famous Julius Caesar. Later on his adopted son Octavian would try the same thing; however, he used very different tactics that led to a much happier ending, transforming Rome into a very strong and influential empire. We will write a custom essay sample on Caesar Augustus Essay or any similar topic only for you Order Now It was the mid-1st century B. C. E. , Rome was ever-growing and the republic that once ran very smoothly was encountering many problems within itself. Wealthy land owners or patricians were gaining too much power and land and since Roman law read that only land owners could serve in the military much of the military power was reduced. Some people tried to change this, for example Tiberius, but his ideas were seen as controversial and he was assassinated in 133 B. C. E. One man named General Marius instituted a law stating that men didnÃ¢â¬â¢t have to own land to serve in the military. Soldiers still wanted land in return for their service though, and the general gave them land but this made soldiers more loyal to army officials rather than to the senate. After Marius retired Rome experienced a brief time of peace only to be broken by the Social War. The Social War was caused by the revolting of lower class Italians that were not entitled to full-citizenship and voting rights. This caused General Marius to come back. He ended the war and seized power of Rome. Marius died of old age and Rome started to become restless. In all of the turmoil there arose a powerful politician, Julius Caesar. Caesar created the First Triumvirate (three men) consisting of Caesar, Crassus, and Pompey (also known as Magnus). The Triumvirate really only made these men more powerful though and really didnÃ¢â¬â¢t help Rome overall. The Triumvirate disappeared when Crassus died and Caesar and Pompey started to fight. Caesar invaded Rome in 49 B. C. E. and became a dictator there. Then later Pompey was murdered in Egypt in 48 B. C. E. Julius increased the senate from 600 to 900 members to give himself more supporters. In five years Caesar held many powerful offices and almost succeeded in transforming Rome into an empire but was assassinated on the Ides of March in 44 B. C. E. Many wars took place after the assassination of Julius Caesar. His adopted son, Octavian, and his friend both formed the Second Triumvirate and defeated Caesars assassins in the Battle of Philippi. Many senators were killed during this time and it was not a good time for the republic. Eventually the Second Triumvirate dissipated and Octavian and Mark Antony turned on one another. Mark Antony married Cleopatra of Egypt and they committed suicide when Octavian invaded Egypt. Octavian became Augustus (exalted one) and now unofficially ruled Rome. Augustus knew that in order to successfully transform Rome into an empire he had to succeed where his father hadnÃ¢â¬â¢t. He supported the arts and technology. He rebuilt temples and created road systems. He pleased his people with holidays and special events. Augustus would even give free bread and wine to all of RomeÃ¢â¬â¢s citizens. The senate just had to sit and watch as Caesar Augustus became the total dictator of Rome. Literature grew exceedingly during this time. Under AugustusÃ¢â¬â¢ rule Rome entered the Pax Romana, the peaceful and golden age of Rome. So in the end Augustus obviously succeeded in the areas where Julius didnÃ¢â¬â¢t. Julius didnÃ¢â¬â¢t utilize his resources as well and didnÃ¢â¬â¢t realize that he needed to take away the senateÃ¢â¬â¢s power not enhance it. Augustus extended Rome to a great power and eventually fully ended the once-renowned republic. In a completely unnecessary comparison this story totally reminded me of the movie Star Wars, the fall of the republic and the birth of an empire. Anyways in conclusion, Augustus transformed Rome into an empire by gaining the loyalty of the citizens and soldiers while the senate lost its power. This man was so dominant that he even named the month of August after himself! Not many could have accomplished what Caesar Augustus did and many still marvel at his feats to this day. How to cite Caesar Augustus Essay, Essay examples
Monday, May 4, 2020
Questions: 1.Calculate the NPV, Non-Discounted Payback, and the IRR of Plant A and Plant B. Interpret your results. (If relevant, state any assumptions you have made.)2.Describe and Analyse 4 keys risks associated with the Project you recommend (Project A or B). 3.Briefly define an Efficient Capital Market. To what extent is Equators ability to borrow funds in the Capital Market dependent upon the Capital Market Operating in an Efficient Manner? Answers: 1.Equator Ltd, an Australian manufacturer of laptop computers, is considering expanding its Australian operation into producing tablet computers. For this expansion the CFO has two options. The first option, Plant A, is a highly automated process that involves significant capital outlays but has lower running costs. Plant B is a more labour intensive facility that has lower initial capital outlays but higher running costs. Plant A and Plant B are mutually exclusive projects. A capital budgeting analysis of both the options was carried out to decide which project the company must choose to manufacture the tablet computers. The incremental cash flow for both the projects is presented below: PLANT A Year 0 1 2 3 4 5 6 Sales Units 155000 163525 172518.875 182007.4131 192017.8208 202578.801 Selling price $320.0 $331.2 $342.8 $354.8 $367.2 $380.1 Revenue $4,96,00,000.0 $5,41,59,480.0 $5,91,38,090.2 $6,45,74,359.1 $7,05,10,357.1 $7,69,92,021.7 Cash operating expenses: Variable cost $33,79,000.0 $35,64,845.0 $37,60,911.5 $39,67,761.6 $41,85,988.5 $44,16,217.9 Labour costs $22,01,000.0 $23,22,055.0 $24,49,768.0 $25,84,505.3 $27,26,653.1 $28,76,619.0 Fixed costs $6,00,000.0 $6,00,000.0 $6,00,000.0 $6,00,000.0 $6,00,000.0 $6,00,000.0 Sales and marketing exp. $19,00,000.0 $19,66,500.0 $20,35,327.5 $21,06,564.0 $21,80,293.7 $22,56,604.0 Total cash operating expenses $80,80,000.0 $84,53,400.0 $88,46,007.0 $92,58,830.8 $96,92,935.3 $1,01,49,440.8 Depreciation $29,20,083.3 $29,20,083.3 $29,20,083.3 $29,20,083.3 $29,20,083.3 $29,20,083.3 Total operating expenses $1,10,00,083.3 $1,13,73,483.3 $1,17,66,090.3 $1,21,78,914.2 $1,26,13,018.6 $1,30,69,524.1 Operating income before taxes $3,85,99,916.7 $4,27,85,996.7 $4,73,71,999.9 $5,23,95,445.0 $5,78,97,338.5 $6,39,22,497.5 Tax @30% $1,15,79,975.0 $1,28,35,799.0 $1,42,11,600.0 $1,57,18,633.5 $1,73,69,201.6 $1,91,76,749.3 Operating income after taxes $2,70,19,941.7 $2,99,50,197.7 $3,31,60,399.9 $3,66,76,811.5 $4,05,28,137.0 $4,47,45,748.3 After tax operating cash flow $2,99,40,025.0 $3,28,70,281.0 $3,60,80,483.2 $3,95,96,894.8 $4,34,48,220.3 $4,76,65,831.6 Terminal year after tax non operating cash flow After tax salvage value $86,29,500 Return of net working capital $35,00,000 Initial investment -$12,65,00,000 Total after tax cas flow -$12,65,00,000 $2,99,40,025.0 $3,28,70,281.0 $3,60,80,483.2 $3,95,96,894.8 $4,34,48,220.3 $5,97,95,331.61 Discount at 13.35% $1.0 $0.882 $0.778 $0.687 $0.606 $0.534 $0.471 Present value of cash flows -$12,65,00,000.0 $2,64,13,784.7 $2,55,83,524.1 $2,47,74,663.9 $2,39,86,950.1 $2,32,20,115.2 $2,81,92,794.9 NPV = sum of present value of all cash flows = $25,671,833 IRR = 20% (using the excel formula) Payback period Year Amount Cumulative value 0 -$12,65,00,000.0 -$12,65,00,000.0 1 $2,99,40,025.0 -$9,65,59,975.0 2 $3,28,70,281.0 -$6,36,89,694.0 3 $3,60,80,483.2 -$2,76,09,210.8 4 $3,95,96,894.8 $1,19,87,684.1 5 $4,34,48,220.3 $5,54,35,904.4 6 $5,97,95,331.6 $11,52,31,236.0 Payback period = 3+(-$2,76,09,210.8 / $3,95,96,894.8) = 3.7 years Working Notes 1. Initial Investment Land $1,16,50,000 Building $8,20,00,000 Machinery $2,61,50,000 Furnishing fittings $32,00,000 Increase in working capital $35,00,000 $12,65,00,000 2. Terminal value Salvage value $86,29,500 Book value $86,29,500 Profit on sale $0 Terminal value $86,29,500 Depreciation Machinery $2,61,50,000 Salvage value 33% $86,29,500 Depreciable value $1,75,20,500 Depreciation $29,20,083.33 The incremental cash flow for project B is presented below: Year 0 1 2 3 4 5 Sales Units 95000 100225 105737.375 111552.9306 117688.3418 Selling price $440.0 $455.4 $471.3 $487.8 $504.9 Revenue $4,18,00,000.0 $4,56,42,465.0 $4,98,38,148.6 $5,44,19,520.4 $5,94,22,034.8 Cash operating expenses: Variable cost $34,01,000.0 $35,88,055.0 $37,85,398.0 $39,93,594.9 $42,13,242.6 Labour costs $23,75,000.0 $25,05,625.0 $26,43,434.4 $27,88,823.3 $29,42,208.5 Fixed costs $8,00,000.0 $8,00,000.0 $8,00,000.0 $8,00,000.0 $8,00,000.0 Sales and marketing exp. $28,00,000.0 $28,98,000.0 $29,99,430.0 $31,04,410.1 $32,13,064.4 Total cash operating expenses $93,76,000.0 $97,91,680.0 $1,02,28,262.4 $1,06,86,828.2 $1,11,68,515.6 Depreciation $13,60,100.0 $13,60,100.0 $13,60,100.0 $13,60,100.0 $13,60,100.0 Total operating expenses $1,07,36,100.0 $1,11,51,780.0 $1,15,88,362.4 $1,20,46,928.2 $1,25,28,615.6 Operating income before taxes $3,10,63,900.0 $3,44,90,685.0 $3,82,49,786.2 $4,23,72,592.2 $4,68,93,419.2 Tax @30% $93,19,170.0 $1,03,47,205.5 $1,14,74,935.9 $1,27,11,777.7 $1,40,68,025.8 Operating income after taxes $2,17,44,730.0 $2,41,43,479.5 $2,67,74,850.3 $2,96,60,814.5 $3,28,25,393.5 After tax operating cash flow $2,31,04,830.0 $2,55,03,579.5 $2,81,34,950.3 $3,10,20,914.5 $3,41,85,493.5 Terminal year after tax non operating cash flow After tax salvage value $33,49,500 Return of net working capital $48,00,000 Initial investment -$8,90,80,000 Total after tax cash flow -$8,90,80,000 $2,31,04,830.0 $2,55,03,579.5 $2,81,34,950.3 $3,10,20,914.5 $4,23,34,993.5 Discount at 13.35% $1.0 $0.882 $0.778 $0.687 $0.606 $0.534 Present value of cash flows -$8,90,80,000.0 $2,03,83,617.1 $1,98,49,889.4 $1,93,18,863.7 $1,87,91,805.1 $2,26,25,171.2 NPV = $1, 18, 89,346.5 IRR = 18% (using the excel formula) Payback period Year Amount Cumulative value 0 -$8,90,80,000.0 -$8,90,80,000.0 1 $2,31,04,830.0 -$6,59,75,170.0 2 $2,55,03,579.5 -$4,04,71,590.5 3 $2,81,34,950.3 -$1,23,36,640.2 4 $3,10,20,914.5 $1,86,84,274.4 5 $4,23,34,993.5 $6,10,19,267.8 Payback period = 3+ (-$1,23,36,640.2 / $3,10,20,914.5) = 3.4 years Working Notes1. Initial Investment Land $1,16,50,000 Building $5,95,00,000 Machinery $1,01,50,000 Furnishing fittings $29,80,000 Increase in working capital $48,00,000 $8,90,80,000 2. Terminal value Salvage value $33,49,500 Book value $33,49,500 Profit on sale $0 Terminal value $33,49,500 3. Depreciation Machinery $1,01,50,000 Salvage value 33% $33,49,500 Depreciable value $68,00,500 Depreciation $13,60,100.00 The result of the analysis is given below: Particulars Plant A Plant B NPV $25,671,833 $11,889,346.5 Non-discounted payback 3.7 years 3.4 years IRR 20% 18% Plant A has a higher NPV and IRR while plant B has a better payback period. However, we will consider Plant A and decide on choosing Plant A for manufacturing the tablet computers because for mutually exclusive projects, the project with a higher NPV should be preferred over all other capital budgeting techniques. This is NPV is considered the best technique as it takes into account the time value of money unlike IRR and non discounted payback period. Also NPV considers all the future cash flows of the project unlike payback period. NPV is the excess of cash inflows over the cash outflows. Hence, higher the NPV, higher is the profitability of the project. Therefore the company should set up Plant A which is highly automated as it has a higher NPV. There were certain assumptions which were made while doing the analysis. The discount rate considered for discounting the future cash flows is the WACC used by the Computer Tablet industry. This is because the discount factor should be such that it incorporates the risk of the project, and since this project is related to the Computer Tablet industry, hence, it is better to take WACC of industry instead of the WACC of the company. The working capital is assumed to be recovered at the end of life of the project. The head office expenses have not been considered in the analysis because it is not an incremental expense and does not arise as a result of the project. 2.Capital budgeting is based on the estimation of the various inflows and outflows related to the project. The management of the company expects the project to deliver the required benefits in order to be profitable. The various types of risks that may be associated with the Project A (recommended) are discussed below: a) Stand alone risk this risk pertains only to the project in question and does not affect the other assets of the company. The risk is associated with the estimation of the future inflows outflows and is quantified by the amount of deviation of the actual inflows and outflows to the estimated one (Burja1, Burja2, 2009) b) Company risk the project is part of the company and hence it also poses risk for the company as a whole as to how the earnings of the company will be affected as a result of undertaking the project. Also the risk of the project may be diversified by the companys other assets. c) Market risk this risk is associated with the market conditions of the economy. The future estimations are based on the overall economic growth and the inflation rate, as given in this case also, so there is a risk that the economic conditions may change and as such all the estimations may go wrong resulting in negative effects for the project. Market risk also includes the change in demand of the tablet computers. The estimations are based on the current market scenario, however if the demand changes, risk of project failure increases. d) Industry specific risk this involves the legal and technological risk of the industry. Under legal risk, there might be a change in the government policies for the industry which may affect the companys earnings. Also a technological advancement may render the tablet computers outdated which would decrease its market demand. 3.Efficient capital market is a market where the prices of a security reflect the new information accurately and that too in real time. A market is said to be efficient if the share prices can fully incorporate and induct the information which includes the basic value of the share. The value of the share is the present value of all the future cash flows associated with the share. The cash flows are in the form of dividends and the selling price of the share in the end. Such efficient markets are said to exist in the real world due to the capital markets being more and more organized and with the transaction costs being very low and information being easily available to all participants, the markets are said to be efficient. The efficient market hypothesis assumes that no analyst or trader can profits from trading as the trading will push the prices of the shares to its real value and thus the shares will be accurately priced. Three forms of efficiency in capital markets are said to e xist which are weak form efficiency in which assumes that all the past activities and information of the stock is incorporated into its price and hence technical analysis is useless in this market form. Under semi strong form, the stock prices are assumed to reflect all publicly available information accurately. However, there exists scope for making abnormal gains by accessing private information available to the insiders of the company. Under strong form, the share prices reflect all information whether public or private and neither technical nor fundamental analysis is useful in this market form. The importance of efficiency of capital markets lies in two ways. First, if the investors can make excess profits by applying trading strategies and second if the stock price reflects all information accurately, the new capital goes to the investment which has it highest valued use (Jones, Netter, NA) Capital markets are used to raise funds by government for infrastructure projects and by private firms for growth and expansion (Marwa, 2016). The primary role of a capital market is allocation of the ownership of the capital stock of the economy. Therefore a capital market allows the firms to make investment decisions and the investors can choose from the various stocks available in the market which represent the firms activities. Also the investors assume that the prices of the stock fully reflect the available information (Fama, 2010). The shareholders of a company want the companys management to maximize the stock prices and thus will ensure the company invest in high valued investments which will increase the shareholder return. Thus if the stock market is efficient, the company can emphasize on investing in long term projects as the funds are easily available and also the prices of new share at which the investors are willing to invest are determine by the market and reflects t he value of the future cash flows of the project. Moreover, a company whose stocks have appreciated finds it easier to raise funds in a capital market because higher share prices means a small ownership of the company needs to be given to raise capital. Favourable economic conditions also make it easier to raise funds. Since the tablets computer industry is a hot industry, thus it will be easier for Equator Ltd. to raise funds in the capital market and that too at the correct prices. References: Burja1, C., Burja2, V., (2009), The Risk Analysis for Investments Projects Decision, Annales Universitatis Apulens Series Oeconomica, Vol.11, No.1 Fama, E.F., (2010), Efficient Capital Markets: A review of Theory and Empirical Work, The Journal of Finance, Vol.25, N0.2 Marwa, M., (2016), Market Data Review: The Role of Capital Markets in Financing Development, accessed online on 13th Feb, 2016, available at https://www.thecitizen.co.tz/News/Business/The-role-of-capital-markets-in-financing-development/1840414-3445302-vd9vvi/index.html Jones, S.L, Netter, J.M., (NA), Efficient Capital Markets, accessed online on 13th February, 2017, available at, https://www.econlib.org/library/Enc/EfficientCapitalMarkets.html
Monday, March 30, 2020
Diversity And Mass Media The question of weather the media's role in establishing racial and ethnic equality is not only very easy to answer but needs to be answered. People need to think of how important it is. People tend to under estimate this power and hate to admit that the media shapes our opinions about people. Most of us will not stand the idea that we stereotype and classify people, let alone that we do that involuntary based mainly on the media. The media's bias in America hasn't taken any specific direction in the con direction. It has just cared always about being pro white. Most of the different major minorities in the US have somehow been attacked at some point by the media. I can't think of an ethnic group that escaped that suppression. African Americans, Latinos, Arabs, Italians, Russians and lately the Chinese. Perhaps the only group that somehow ended up with a good positive image are the oriental people, however I don't see the origin of this stereotype originating from the media. That positive image is a sort of thing that goes around people seeing a lot of oriental people in nice cars, successful at jobs and school. Sure, the media have set a stereotype that each and every one of them is a martial art master, but still I think most of the real positive image is from the daily life not the mass media. Perhaps as an Arab, I can totally relate to what Shaheen has written in his article about the media's image of Arabs. Not only was I furious when I saw Arabs portrayed in movies as primitive, camel riding nomads, but I had always asked my self why? Although Shaheen is from the small minority Christian Arabs, his comments are valid for all Arabs.
Saturday, March 7, 2020
Traditional Vs. Roth IRA Your Ultimate IRA Guide SAT / ACT Prep Online Guides and Tips IRAs, or independent retirement accounts, are tax-advantaged savings accounts that help you save money for retirement. There are two main types, traditional IRAs and Roth IRAs, and they work in slightly different ways. This guide will tell you everything you need to know about traditional and Roth IRAs and help you decide which type of account is better for you. Before delving into the differences, letÃ¢â¬â¢s go over what you need to know about independent retirement accounts in general. What Is an IRA? An IRA is a type of savings account designed to help you save for retirement. IRAs offer a major tax advantage wherein your money is only ever taxed once. In a brokerage account, your money can be taxed twice. An IRA is made up of financial products like stocks, bonds, and mutual funds. The money you contribute will slowly grow over time as a result of annual compound interest. Typically, savings in IRAs grow at a rate of 5% to 7% each year. While this growth wonÃ¢â¬â¢t look like much at first, it can add up significantly over the decades. If you start saving in your twenties rather than your thirties, youÃ¢â¬â¢ll see a huge difference in returns. When it comes to saving for retirement, youÃ¢â¬â¢re much better off the earlier you start. While you can start contributing to an IRA at any time, you must abide by an IRA contribution limit. Read on to find out how much money you can put each year into your IRA. By putting your money in a protected environment, it can grow significantly bigger over time. How Much Can You Contribute to an IRA? Whether you have a traditional IRA or Roth IRA, you can only contribute up to $5,500 per year. This was the IRA contribution limit for 2015 and 2016. It could change in years to come due to inflation. If youÃ¢â¬â¢re over 50 years old, then you can contribute $1,000 more for a yearly total of $6,500. This extra $1,000 added to the IRA contribution limits is considered a Ã¢â¬Å"catch upÃ¢â¬ contribution to help out those who didnÃ¢â¬â¢t max out their limits in earlier years. Most people contribute to their IRAs via automatic monthly payments. You can put in as much or as little as you like, but youÃ¢â¬â¢ll see the greatest long-term benefit by contributing up to the $5,500 limit. Now that you have a general sense of IRAs and how they help you save for retirement, letÃ¢â¬â¢s look closer at the differences between a traditional vs. a Roth IRA. People 50 and over can contribute an additional $1,000 per year to catch up as they round the bases toward retirement. Roth vs. Traditional IRA: How Are They Different? The major difference between a traditional IRA and a Roth IRA has to do with how your money is taxed. By learning about the different tax structure, you can figure out which one is more advantageous to you, depending on your age and financial profile. The second difference when you look at Roth vs. traditional IRA has to do with when you can withdraw money. Consider the tax and withdrawal rules for traditional IRAs, followed by the tax and withdrawal Roth IRA rules. Tax Advantages of a Traditional IRA Traditional IRAs allow your money to grow completely un-taxed until you take it out. You contribute pre-taxed money, which grows in your account until you withdraw. While your money is tax deductible when you contribute to a traditional IRA account, itÃ¢â¬â¢s taxed normally when you withdraw. YouÃ¢â¬â¢ll pay all the taxes that you didnÃ¢â¬â¢t pay before, but you may find that youÃ¢â¬â¢re saving money on taxes overall. Why? You may be in a lower tax bracket when you retire than you were when you were working and contributing money to your IRA. Traditional IRA Withdrawal Rules When you contribute money to a traditional IRA, you canÃ¢â¬â¢t touch it until youÃ¢â¬â¢re 59 Ã ½ without penalty. If you withdraw money before, then youÃ¢â¬â¢ll have to pay a hefty 10% penalty. ItÃ¢â¬â¢s recommended that you take out about 4% of your savings per year during retirement. Some accounts also have required minimum withdrawals (RMDs) that compel you to take out a certain amount of money once you hit 70 Ã ½. Even if youÃ¢â¬â¢re still working at age 70 Ã ½, youÃ¢â¬â¢ll be required to start withdrawing money from your IRA. the amount of the RMD varies by individual and is calculated based on your account balance and age. When you contribute to a traditional IRA, your money is basically kept under lock and key until youÃ¢â¬â¢re 59 Ã ½. Tax Advantages of a Roth IRA While traditional IRAs are taxed later, Roth IRAs are taxed now. In other words, you contribute money thatÃ¢â¬â¢s already been taxed to a Roth IRA. You donÃ¢â¬â¢t get any tax breaks for your contributions, but you wonÃ¢â¬â¢t have to pay any taxes when you withdraw. Basically, a Roth IRA works in the exact opposite way of a traditional IRA. You pay taxes when you contribute and not when you withdraw, whereas with a traditional IRA you pay taxes when you withdraw and not when you contribute. Roth IRA Withdrawal Rules Roth IRA rules are more flexible than those of traditional IRAs about when you can withdraw your money. You can take out money from a Roth IRA at any time without penalty as long as youÃ¢â¬â¢ve held the account for at least five years. Technically, you can only withdraw money youÃ¢â¬â¢ve contributed without penalty. You canÃ¢â¬â¢t touch any earnings on your contributions until you retire. Roth IRAs also donÃ¢â¬â¢t have any RMDs, so youÃ¢â¬â¢re not required to take out your money once you surpass a certain age. With a Roth IRA, you could withdraw all your funds after five years to buy that pleasure yacht youÃ¢â¬â¢ve had your eye on. But, you probably shouldnÃ¢â¬â¢t. Traditional IRA vs. Roth Ira- Which One Should You Choose? Given the difference between Roth IRA rules and traditional IRA rules, which account would be more beneficial to you? The answer to that question largely depends on your age and current tax bracket. Younger people typically benefit more from a Roth IRA. They have plenty of time for their money to grow until retirement, and theyÃ¢â¬â¢re usually in a lower tax bracket than they will be in 10 or 20 years. If youÃ¢â¬â¢re in your twenties and your tax bracket is 20% or lower, then youÃ¢â¬â¢ll probably benefit from a Roth IRA. People who are older and/or in a high tax bracket will probably do better with a traditional IRA. They can contribute more money, since itÃ¢â¬â¢s not taxed, and pay taxes when theyÃ¢â¬â¢re in a lower tax bracket after retirement. To see how tax brackets affect your savings in an IRA account, consider the chart below. If your tax rate is lower in retirement Traditional Roth Current tax rate 25% Tax rate in retirement 15% Annual investment $5,500 $5,500 After-tax value in retirement* $613,313 $598,444 *Based on moderate growth (around 8% annual return) over 30 years If your tax rate is higher in retirement Traditional Roth Current tax rate 25% Tax rate in retirement 33% Annual investment $5,500 $5,500 After-tax value in retirement* $505,593 $598,444 *Based on moderate growth (around 8% annual return) over 30 years If your tax rate goes down in retirement, then youÃ¢â¬â¢ll have more money from a traditional IRA. If your tax rate goes up, then youÃ¢â¬â¢ll end up with more savings from a Roth IRA. A secondary factor to consider when deciding between a traditional and Roth IRA is your financial self-control. As you read above, the two types of IRAs have different withdrawal rules. Will you be able to resist withdrawing money from a Roth IRA before retirement? Since thereÃ¢â¬â¢s no penalty for withdrawing after five years, youÃ¢â¬â¢ll need to set limits on your spending so you donÃ¢â¬â¢t end up splurging on a luxury vacation to Fiji with your hard-earned money that was supposed to go toward retirement. If you donÃ¢â¬â¢t have clear cut answers to either of these considerations, then you might consider opening both types of IRAs. Choosing between a traditional IRA and Roth IRA requires that you consider the balance between your tax bracket and years until retirement. Can You Choose Both Types of IRAs? If youÃ¢â¬â¢re unsure which account is more advantageous to you, then you could consider setting up both a traditional and a Roth IRA. If you start to see real advantages to one over the other, then you could roll your money over to one account. Before opening both types, you should carefully consider the implications of taxes. If you opt for the Roth IRA, then youÃ¢â¬â¢ll have to pay taxes on any money that you roll over from a traditional IRA. This money would have otherwise grown untaxed until you withdrew it at age 59 Ã ½. You should also note that opening both types of accounts wonÃ¢â¬â¢t increase your yearly contribution limit. If you choose both types of IRAs, then the $5,500 limit applies to both. You can only contribute $5,500 collectively to your retirement savings accounts per year. Choosing both types of accounts is unnecessarily complicated for the majority of people. You should only do so if youÃ¢â¬â¢ve done some serious calculations and feel that it would be financially beneficial to you in the long term. For most of us, choosing one type of account based on our age and current tax bracket is the better way to go. Once youÃ¢â¬â¢ve chosen your type of IRA, how do you get about setting up an account? If you're having trouble deciding between types of IRAs, you could hedge your bets and open both. How to Set Up an IRA There are a number of IRA providers with whom you can set up an account. Most require a minimum investment up front, but some are a lot lower than others. When you set up an account, you can either set it on auto-pilot or take a hands-on approach to choosing your investments and designing your portfolio. Below are six recommendations for the best IRA providers, but first, letÃ¢â¬â¢s go over the factors you should consider when choosing an IRA provider. What to Look for When Choosing an IRA Provider The best IRA providers offer some or all of the following: Low account fees Low account minimums Good customer service and educational resources for new investors Low fees for trading stocks (this mostly applies to people looking to take an active approach to building their portfolio) If you fall in the majority of people who want someone else to manage their account, then you should look for a managed account or a target-date fund. In these types of account, youÃ¢â¬â¢ll pretty much only have to set your estimated date of retirement. A broker will do the rest. Now that you know what to look for in an IRA account and provider, check out the suggestions for the top six IRA providers. When choosing an IRA account, you should look for low account fees and low account minimums. Best IRA Providers for 2016 Based on the factors listed above, these six providers rose to the top for their low account fees, strong customer service, and other offerings. TD Ameritrade - popular provider with strong resources and support for new investor. TD Ameritrade doesnÃ¢â¬â¢t require any minimum balance, and it has a large selection of funds to choose from. One downside is that its trade commission fees are higher than usual at $9.99. TD Ameritrade, then, is a better choice for the new or hands-off investor, but not as popular among active traders. Vanguard - another popular low-cost provider with a $0 minimum balance. Vanguard is especially strong when it comes to target-date funds, where you set your date of retirement and donÃ¢â¬â¢t have to do much else. E*Trade - a provider with a large selection of funds and no account minimums. E*Trade stands out for its user-friendly website. Wealthfront - this provider manages accounts of up to $10,000 for no fee. Wealthfront, then, is good for the average investor who wants to take a hands-off approach. Betterment - like Wealthfront, Benefit is appealing to the hands-off investor. It tends to cater to people with large balances of $100k or more. Options House - best for active traders. Options House has a lower than average per trade fee of just $4.95. Once youÃ¢â¬â¢ve decided between a traditional and Roth IRA and chosen your provider, how do you open your account? When it comes to choosing an IRA provider, you've got options. Delicious, delicious options. How to Open an IRA Account Opening an IRA account is an easy, online sign-up process. Just head to the website of your chosen provider and fill out the IRA application. YouÃ¢â¬â¢ll enter personal information, including your social security number and employment information. Most providers offer a different kinds of accounts, so you'll choose the one you want to open. Here's an example from TD Ameritrade's "Open New Account" page. Source: TD Ameritrade YouÃ¢â¬â¢ll also indicate how youÃ¢â¬â¢ll fund the account, e.g., through automatic monthly transfer from your bank account. You can also transfer money from an existing IRA or 401k (an employer-sponsored retirement account). Depending on your funding choice, you may need your account and routing number or the account number of a separate account. The best way to make the most of your IRA is to deposit money on a monthly basis, to max out your annual contribution limit, and to start as early as you can. If you start saving in your twenties, then you could have a savings account with hundreds of thousands of dollars by the time you retire. In closing, letÃ¢â¬â¢s go over the key points you need to remember about IRAs. Opening your IRA account is the first step toward a secure retirement! Saving for Retirement in an IRA: Key Takeaways When it comes to saving for retirement, itÃ¢â¬â¢s never too early to start. Because your money grows in an IRA, youÃ¢â¬â¢ll see significantly more earnings the longer your money is invested in the account. IRA accounts are especially beneficial because of their tax advantages. Your money will only ever be taxed once, either when you withdraw it, as in a traditional IRA, or when you contribute it, as in a Roth IRA. Both accounts have advantages, and the one you choose should largely depend on your age and current tax bracket. While you should figure out which account will maximize your savings, in truth, you canÃ¢â¬â¢t go wrong with either. Both are tax-advantaged accounts that will help you save up money that youÃ¢â¬â¢ll rely on later in life. By opening and contributing to an IRA, you invest in your future and let your money work for you. What's Next? What is ROA, and how can looking at it provide you with helpful investment information? We discuss the meaning of ROA (return on assets) and how you can use it in this article. Not ready to open up an IRA but still looking for ways to save? Try the 365-day penny challenge!
Thursday, February 20, 2020
Increasing Awarness of Andropause - Article Example A. Vermeulan proposed in his article Andropause that Menopause is comparably a general issue which is associated with femalesÃ¢â¬â¢ hormonal deficiency in their middle age. On the other hand, Andropause is a similar health issue, which is associated with menÃ¢â¬â¢s hormonal deficiency. It is a general issue with aging men, which is often not identified. A research by Rabih A. Hijazi and Glenn R. Cunningham reflects that there is 30 percent of American men falling in the age group of 60 to 70 years, and 70 percent American men falling in the age group of 70 to 80 years, who are suffering from this particular health issue. The problem of Andropause can potentially cause several other significant health issues, in addition to psychological problems, which are often associated with it. It is pertinent to spread awareness regarding the issue of Andropause, by which severe potential risk factors associated with it can be reduced to a significant extent. In order to increase the awareness of Andropause among men, it is essential to explicate the problem along with its causes and symptoms followed by the possible diagnosis for Andropause. Andropause is a term that depicts a set of effects demonstrating their presence in few aging men, which are to some extent similar to womenÃ¢â¬â¢s problem of Menopause. In Andropause, the production of sperm in the body along with the level of testosterone decreases. In the male body, muscle mass, facial hair, deep voices and the pattern of body hairs are dependent upon testosterone. Testosterone is a hormone which plays a significantly important role in the development of a male body. Andropause is highly associated with a decrease in the level of testosterone, which is a male hormone. An estimate (as mentioned by Robert S. Tan in his book The Andropause Mystery) proposes that the level of testosterone decreases in men after the age of thirty. This decrease is approximately 10 percent in each deca de after a man has crossed 30 years of age. This gradual decrease in the level of testosterone leads to the problem of Andropause in which a male encounters several physical and psychological issues which are often counted as symptoms of Andropause. There are several causes for Andropause in which the most common and significant is mentioned above, which is a deficiency in the level of testosterone in the male body. As Vermeulan describes, when a man ages, his body begins to produce a lower amount of testosterone. In addition, there is another hormone that acquires a significant amount of testosterone from the blood. This hormone is known as Sex Hormone Binding Globulin (SHBG). The level of testosterone gradually starts to decrease in the aging man, due to those two factors. The level of testosterone in the body, which is not being acquired by SHBG is known as bioavailable testosterone, which can be utilized by the body as the term demonstrates. Those men who are most likely to have the problem of Andropause possess a substantially lower amount of bioavailable testosterone in blood circulating in their bodies. Those tissues, which are stimulated by the level of testosterone, receive low quantity of it due to a lower level of testosterone in the blood. This phenomenon can potentially cause several physical as well as mental changes in the affected individual. As the biological cause of Andropause has been explicated, there are several symptoms by which an individual can be diagnosed as having the problem of An