An appropriate comparison of investment products can only be made on: OA) A capital gains basis B) An after-tax basis C)
Posted: Tue Jan 18, 2022 1:01 pm
- An Appropriate Comparison Of Investment Products Can Only Be Made On Oa A Capital Gains Basis B An After Tax Basis C 1 (18.71 KiB) Viewed 43 times
- An Appropriate Comparison Of Investment Products Can Only Be Made On Oa A Capital Gains Basis B An After Tax Basis C 2 (33.06 KiB) Viewed 43 times
- An Appropriate Comparison Of Investment Products Can Only Be Made On Oa A Capital Gains Basis B An After Tax Basis C 3 (35.48 KiB) Viewed 43 times
- An Appropriate Comparison Of Investment Products Can Only Be Made On Oa A Capital Gains Basis B An After Tax Basis C 4 (35.33 KiB) Viewed 43 times
Rowdy Ronnie wants to withdraw $500/month from his TFSA in retirement. His current TFSA balance is $26,875.33 and he is comfortable using a nominal rate of return of 6% for his TFSA prior to retirement. Throughout his retirement, Rowdy feel as though he will accept a lower nominal return of 4.0% from his TFSA. Rowdy also believes that it is reasonable to use a long-term inflation rate of 2.25% wherever inflation needs to be factored in. If Rowdy is wanting to start making beginning of the month withdrawals from his TFSA in exactly eighteen years and wants to keep making those withdrawals for thirty years thereafter, how much must he contribute to his TFSA at the end of each month between now and then? OA) $284 OB B) $176 $68 DD) $160
Betty is retired and lives mostly from the Interest generated by the bond portfolio in her RRIE She would like to sell one of the bonds to generate cash for her upcoming RRIF payment and will reinvest the remainder. Each bond has a face value of $10,000. Betty has heard that interest rates will rise from the current 3% to 5% over the next year but she is unsure how this will affect her bond portfolio. Which bond is best for Betty to sell if she wants to preserve her capital in a rising interest rate environment? O A) A Government of Canada bond trading at 99 with a coupon rate of 4% and maturity date of 2021 OB) A corporate bond trading at 100 with a coupon rate of 4% and maturity date of 2017 Og A Government of Canada bond trading at 101 with a coupon rate of 3% and maturity date of 2018 Dj A corporate bond trading at 101 with a coupon rate of 3% and maturity date of 2025
Damien owns shares of Visit Inc., which have a current market price of $42 per sha the company pald-out 35% of its earnings last year - resulting in an annual divider of $1.40 per share. Damien has used the price-earnings based valuation model, assuming zero-growth for the dividends, to assess the current value of Visit Inc. shares. Assuming Damien used 8% as his required rate of return, which of the following statements is true regarding the price of Visit Inc. shares? A) Visit Inc. shares are underpriced. B) The actual price of Visit Inc. shares is identical to the expected price. och C) It is not possible to predict whether the shares are currently overpriced or underpriced, using the given information. D) Visit Inc. shares are overpriced.