Personal Business Concepts

Bernie and Pam brittten are a young couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated $40,000 to invest, they now rent an apartment but are considering purchasing a condominium for $100,000. If they do they are requred to have $10,000 down payment. Their friend is a investment advisor who has suggested these following investments. The condominium - expected annual increase in market value = 5%. Municipal bonds - expected annual yield = 5%. High-yield corporate stocks - expected dividend yield = 8%. Savings account in a commercial bank - expected annual yield = 3%. High-growth common stocks - expected annual increase in market value = 10%; expected dividend yield = 0. Calculate the after-tax yields on the foregoing investments, assuming the Brittens have a 28% marginal tax rate (based on Public Law 108-27, The Jobs and Growth Tax Relief Reconciliation Act of 2003). How would you recommend the Brittens invest their $40,000? Explain your answer.

  1. 👍
  2. 👎
  3. 👁
  1. We'll be happy to comment on your ideas once you have written them up and reposted.

    =)

    1. 👍
    2. 👎
    👤
    Writeacher

Respond to this Question

First Name

Your Response

Similar Questions

  1. Career Planning

    1.Which of the following is the term for day-to-day and long-term tasks you are assigned to complete? A.Career Research********* B.Job Responsibilities C.Job Title D.Training Materials 2. Why is career planning important? A.You

  2. Career prep

    which of the following careers have subject-specific skills for the interpersonal relationship personality trait? finance psychology public service**** sociology**** which of the following careers have subject-specific skills for

  3. PreAP Physics

    Pam has a mass of 40Kg and she is at rest on smooth, level, frictionless ice. Pam Straps on a rocket pack. The rocket supplies a constant force for 22m and Pam acquires a speed of 62 m/s. A) What is the magnitude of the force? B)

  4. Physics

    Pam, wearing a rocket pack, stands on frictionless ice. She has a mass of 44 kg. The rocket supplies a constant force for 22.0 m, and Pam acquires a speed of 62.5 m/s. Assume that air resistance is negligible. (a) What is the

  1. math

    the annual household cost of telephone service in the US increased at a relatively constant rate of $27.80 per year from 1981 to 2001. in 2001 the annual household cost of telephone service was $914. a: what was the annual

  2. Chemistry

    A household receives a $155 electricity bill. The cost of electricity is $0.129/kWh.How much energy, in joules, did the household use?

  3. Chemistry

    Using household bleach and saltwater of the same molarity, describe the quantities of each that would me needed to make 30 ml of a solution that contained 50% of the hypochlorite in household bleach.

  4. Math

    I need help!!!! 7th grade Enter your answer and show all the steps that you use to solve this problem in the space provided. It takes Pam 45 minutes to drive to work and 60 minutes to drive home from work. Write the ratio of the

  1. Math

    The average household uses 2 bags of sugar per household per month. Each bag of sugar weighs 10 pounds. Assume that that there are 3 people in each household on average and that the US population is 336 million. How many pounds of

  2. Personal finances

    Calculating future value if salary. During a job interview, Pam thompson is offered a salary of $28.000. The company gives annual raises of 6 percent. What would be Pam's salary during her fifth year on the job?

  3. Phychology

    Which of these guests would require service to their car? A young mother with her baby A man in his workout wear A couple with three bags of groceries An elderly person with one bag of groceries All of the above

  4. civics

    according to the united states constitution, which action would be the most appropriate for state government A. printing a newly- designed twenty dollar bill B. establishing a new post office growing community C. establishing a

You can view more similar questions or ask a new question.