What is the highest deferred compensation payment

Assignment Help Management Theories
Reference no: EM131457345

Question: Your employer is considering paying you deferred compensation in 5 years or a cash bonus of $1 million today. Here are the facts:

• Your tax rate today is 50%.

• Your tax rate in 5 years will be 35%.

• Your employer's tax rate today is 30%.

• Your employer's tax rate in 5 years will be 40%.

• Both you and your employer have an after-tax discount rate of 7%.

a. What is the highest deferred compensation payment (received 5 years from now) that your employer would be willing to pay?

b. What is the lowest deferred compensation payment (received 5 years from now) that you would settle for?

c. Can you and your employer get together and write a mutually beneficial deferred compensation contract? If so, describe the contract (amount).

Reference no: EM131457345

Questions Cloud

What are the design issues associated with mobile devices : What are the design issues associated with mobile devices that must be considered when deciding to incorporate them into a business application?
What strategies can be used to assist an individual : According to Rogers, unconditional positive regard involves showing complete support and acceptance of a person no matter what that person says or does.
Formulate an outline of your business plan : You will formulate an outline of your business plan. For the business plan, you will include following sections. For each section should be about 2 pages long.
Evaluate humanism in terms of the scientific method : Evaluate humanism in terms of the scientific method. Is it testable,systematic, and comprehensive ?
What is the highest deferred compensation payment : Your employer is considering paying you deferred compensation in 5 years or a cash bonus of $1 million today. Here are the facts.
What further questions do you have about your findings : Please discuss your results and describe what you learn. What further questions do you have about your findings?
Create a return on investment : Using Microsoft® Excel® to do your calculations, create a Return on Investment (ROI) analysis comparing the cost of 10 physical servers.
What is the present value of the after-tax cost of each firm : Suppose you will retire in 9 years. Throughout your life you will face a tax rate of 31% and earn an after tax rate of return of 8% on your investments.
Maximum range of bridged wireless connections : 1. What is the maximum range of bridged wireless connections? 2. How does TKIP ensure that encrypted data has not been tampered with?

Reviews

Write a Review

Management Theories Questions & Answers

  Hotels & resorts corporation organizational analysis

Compile an analysis of the operation's internal environment to include information on subsidiaries, quality control, production, inventory, scheduling, layout of stores, and plans for expansion (domestic and international) for Hyatt Hotels & Reso..

  Who should win this case either germ or the administrator

If they are the same, why is this so? If they are different, what are the differences? Who should win this case, GERM or the administrator? Why?

  Would identify smith and hawken as a firm interested in csr

Take another look at the quote earlier in this chapter by Paul Hawken. He seems to be saying that it is not acceptable to use social perception as a way to.

  Australian labour migrations policies mutually advantageous

Things to consider are the Australian visas, number 457 , 476, 416, and 858. Find a specific case study talk on. and provide policy recommendations to the case study and also provide a policy brief recommendation

  What are five ways the new google docs can help your team

What are five ways the new Google Docs can help your team accomplish work more efficiently, even when you're not in the same room together.

  Is spyware or adware unethical

For years, Microsoft endured many more problems with computer viruses than Apple. Apple enthusiasts attribute that to their belief that Apple developers.

  Charged with keeping up with current technology

Imagine that you are an IT manager charged with keeping up with current technology. Create a PowerPoint presentationfor the chief information officer that provides an overview of two areas that you want to update based on emergingtechnologies.

  Find a current article of substance in the business press

If you are having trouble finding an article, read through the table of contents at the beginning of the book to familiarize yourself with the names of concepts that will be presented later in the course. Read your article carefully, making notes ..

  What are the benefits to li and fungs customers

What are the benefits to Li & Fung's customers of working with the company? Why do companies such as The Limited outsource the coordination of manufacturing to Li & Fung, rather than do it themselves?

  Full conceptual design for your atm interface

You should design your interface for a square touchscreen that is approximately 250mm (10') in width and height. The resolution of the screen is not defined, but you can assume that the screen will have around 72 dpi.

  Explain brownian motions

(Transformations preserving the MBM). Show, by verifying properties (1)-(3), that the following processes are Brownian motions.

  Draw a decision tree that represents this problem

Your Decision: Think of a simple decision you face regularly and formalize it as a decision problem, carefully listing the actions and outcomes without the preference relation. Then assign payoffs to the outcomes and draw the decision tree.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd