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Lia plans to retire when she turns 70. Lia believes she needs $100,000 per year to live comfortably in her post-work life. She has
Lia plans to retire when she turns 70. Lia believes she needs $100,000 per year to live comfortably in her post-work life. She has two children and hope after she has passed away her children and heirs can receive the same amount forever. Required: (b) Lia is 30. She wants to use her superannuation funds to save for the retirement fund and payment for her heirs. The current superannuation balance is $50,000. What is the constant annual superannuation contribution Lia must make until retirement to satisfy the superannuation balance you have calculated in (a)? Use 8% as the rate of return on his superannuation fund. Question B6c Robotic Process Automation Ltd is a fast-growing company and is growing at a constant growth rate of 20%. The company just paid a dividend of $4. The required rate of return is 30%. Required: (c) The current market price of the share is $50. Would you recommend a shareholder to sell or buy more shares? Explain. (2 marks)
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b To calculate the constant annual superannuation contribution Lia must make until retirement we need to determine the present value of the desired re...Get Instant Access to Expert-Tailored Solutions
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