Margaret owns land that appreciates at the rate of 10% each year. ralph owns a zero coupon (i. e., all of the interest is paid at maturity but is taxed annually) corporate bond with a yield to maturity of 10%. at the end of 10 years, the bond will mature and the land will be sold. at the end of the 10 years,
a. margaret and ralph will have accumulated the same after-tax amounts.
b. ralph will have accumulated a greater after-tax amount because the interest on the bond is tax-exempt.
c. margaret will have accumulated the greater after-tax amount because the gain on the land is tax-exempt.
d. margaret will have accumulated the greater after-tax amount but only if her marginal tax rate never exceeds 27%.
e. margaret will accumulate the greater after-tax amount because she earns a return on the deferred taxes.

Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product bold. labor costs will go from $7.91 to $8.41 per unit. in addition, their material costs have fallen from $13.66 to $12.66. assume all period costs as reported on baldwin's income statement remain the same. if baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product bold would need to be sold next round to break even on the product?

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Personal financial planning is the process of creating and achieving financial goals? true or false