Financial system is very important for our society. Please explain with examples how can financial system...

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Financial system is very important for our society. Please explain with examples how can financial system work to help improve our lives? Company F has $16million asset with $4 million cash and $12 million other assets. The debt is $4 million and $12 million equity. The current outstanding shares is 0.5 million and the stock price is $424. Please draw the balance sheet and explain if company F distributes out all $4 million to shareholders with (1) cash dividend, (2)share repurchase, and (3) stock dividend of 60%. what would be the change on balance sheet, respectively? (Tips: only write new balance sheet and calculation process.) Person A starts working at 35 with no deposits. He retires at 65. His annual income is $40,000. He has to save some money to support his after-retirement life from 65 to 85. The constant interest rate is 8% per year. If (1) he chooses to maintain his after-retirement spending at the rate of 80% of his pre-retirement income, how much money should he deposit every year? if (2) he would like to maintain a constant spending before and after retirement, how much does he save every year? Financial system is very important for our society. Please explain with examples how can financial system work to help improve our lives? Company F has $16million asset with $4 million cash and $12 million other assets. The debt is $4 million and $12 million equity. The current outstanding shares is 0.5 million and the stock price is $424. Please draw the balance sheet and explain if company F distributes out all $4 million to shareholders with (1) cash dividend, (2)share repurchase, and (3) stock dividend of 60%. what would be the change on balance sheet, respectively? (Tips: only write new balance sheet and calculation process.) Person A starts working at 35 with no deposits. He retires at 65. His annual income is $40,000. He has to save some money to support his after-retirement life from 65 to 85. The constant interest rate is 8% per year. If (1) he chooses to maintain his after-retirement spending at the rate of 80% of his pre-retirement income, how much money should he deposit every year? if (2) he would like to maintain a constant spending before and after retirement, how much does he save every year?

Answer rating: 100% (QA)

The financial system plays a crucial role in the economy facilitating the allocation of capital and resources and supporting economic growth Here are ... View the full answer