Question
Pretend that all members of the group (whether 2 or 3) work as stockbrokers for the Acme Equity Firm. Person A earns $65,000 a year;
Pretend that all members of the group (whether 2 or 3) work as stockbrokers for the Acme Equity Firm. Person A earns $65,000 a year; salary is given monthly. Person B earns $75,000 a year; salary is given semimonthly. Person C (if there is a 3rd person in the group) earns $85,000 a year; salary is given weekly. 1. Solve for each others withholding tax using the percentage method (each persons allowances will be unique since some may have children, some may not have children; each persons marital status will be unique since some may be single, some may be married). Go to page 228 for reference. 2. A customer walks in and asks for financial advice. He asks Person A what are the 3 best Tech Stocks to invest in, in terms of PE Ratio and Current Yield. He also asks Person B what are the 3 best Retail Stocks to invest in (retailers are companies like Walmart, Rite Aid, etc.), in terms of PE Ratio and Current Yield. Lastly, he asks Person C (if there is a 3rd person in the group) what are the 3 best Car Stocks to invest in, in terms of PE Ratio and Current Yield. Go to page 433 for reference. 3. Due to your work as stockbrokers, you have all moved up in socio-economic standing. Person A decides to get $200,000 in life insurance, payable semiannually. Person B decides to get $250,000 in life insurance, payable quarterly. Person C (if there is a 3rd person in the group) decides to get $300,000 in life insurance, payable monthly. a. Each person should decide what type of insurance they want: 10 Year Level Premium Term, Whole Life, Universal Life, or 20 Pay Life. b. Each persons age will be unique (some may be 20, some may be 30) and each persons sex will be unique as well (some will be male, some will be female). c. Solve for each persons Annual Cost. Go to page 549 for reference
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