Pearson eText Foundations of Finance -- Instant Access (Pearson+)
10th Edition
ISBN: 9780135639382
Author: Arthur Keown, John Martin
Publisher: PEARSON+
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Chapter 17, Problem 3SP
a)
Summary Introduction
To determine: Whether Company A needs to move to the monthly wage payment system.
b)
Summary Introduction
To determine: The annual
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1. Peter is a broker who earns commission of 3 1% on all securities sales that he makes. For
the past year, he closed sales totaling P928,867, Find the amount of commission he
earned for the year.
2. Roger is a Sales Engineer receiving a basic monthly compensation of P13, 500.00 and
commission on all sales of 1%. Compute for his gross earnings for the month if he sold
P124, 580.00.
3. Alex is a straight commision Salesman, He is given commission on the basis of the
following schedule:
Monthly Sales
Less than P50,00..
1%
P50,000-99,999.
2%
P100,000-149,999.
3%
P150,000 and above.
4%
Compute for his commission assuming his total sales is:
a. P75,800
b. P49,900
c. P151,200
d. P123,500
4. Moses is a Sales Representative receiving an annual salary of P130,000 plus commission
an all his sales above quota of P25,000 in accordance with the following schedule:
First P30,000 above quota
%
Next P50,000
1%
Next P70,000
2%
Over P150,000
3%
Compute for his gross earnings if his sales for the month:…
Instructions:
1. Analyze the given scenario and choose what type of investment is best for Mr. Santos. Explain your answer. (include your analysis through computations)
Scenario:
Mr. Santos is a government employee, His time deposit account of P 500,000 with 4% interest p.a. maintained with BDO generates a monthly interest of P 1,334.00 (net of 20% withholding tax). He is not satisfied with the earnings that he was receiving.
One day, he talked to a BDO financial adviser to seek advice on where to place his money with a higher interest rate. The financial adviser explained to him the following options:
1. Treasury-Bills -placement 30 days 6% one year
2. Bonds issued by San Miguel Corporation Face Value per bond P 100,000, 6% yield, quarterly coupon rate, term 10 years.
3. PLDT preferred 12 % Shares of stocks par value, P 100 per share with Market value P 150 per share.
If you are Mr. Santos, what option are you going to choose?
Consider the following transactions occurring during a given fortnight. Remi's wage for his casual job is $600, paid on his bank transaction account (transaction 1); his scholarship allowance for studying is $150, paid on his bank transaction account (transaction 2); he pays a rent of $250 through a bank account transfer (transaction 3); the coupons on his portfolio of bonds pays $70 on his transaction account (transaction 4); he receives $350 in his transaction account for selling shares he had bought at $300 (transaction 5); he buys a TV worth $920 with his debit card (transaction 6).
Draw Remi's balance sheet and represent how the six transactions above have affected it. Use one single balance sheet, indicate the value of the variations (sign followed by a number) and use only one name for each item [example: equity name appears only once even if several transactions are under equity] No explanations are required.
How much of the funding of the TV comes from current savings…
Chapter 17 Solutions
Pearson eText Foundations of Finance -- Instant Access (Pearson+)
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - What are the two major objectives of the firms...Ch. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 1SPCh. 17 - Prob. 2SPCh. 17 - Prob. 3SPCh. 17 - (Interest rate risk) Two years ago your corporate...Ch. 17 - Prob. 6SPCh. 17 - Prob. 7SPCh. 17 - Prob. 8SPCh. 17 - Prob. 9SPCh. 17 - Prob. 10SPCh. 17 - Prob. 11SPCh. 17 - Prob. 1MCCh. 17 - Prob. 2MCCh. 17 - Prob. 3MCCh. 17 - Prob. 4MC
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