Question
Que 1.a.) Jordans have an Individual Retirement $22,300 which is invested in zero-coupon bonds which mature at john retirement date in three years time. The
Que 1.a.) Jordans have an Individual Retirement $22,300 which is invested in zero-coupon bonds which mature at john retirement date in three years time. The Jordans broker I.M Slick has recommended that they sell the zero-coupon bonds in their IRAs and invest the proceeds in real estate limited partnership. This venture offers the opportunity for a 15 percent annual return. But it also carries substantial risk. I.M Slick will receive a commission of 8 percent of the monies invested in the partnership. Do you think this an appropriate investment recommendation for Mr. Slick to make? Why or why not? should the Jordans sell the bonds and invest in the partnership? why or why not?
1.b.) Is there a difference between the company's sales growth and its profit growth? specifically how is the difference likely to influence borrowing needs? To what is the difference be address to firm owners.
1.c). How does firms payout ratio relative to its sales growth? is this appropriate firms? why not?
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