Fletch and Cammie Gates Are Married with Three Dependent Children

question 59

Essay

Fletch and Cammie Gates are married with three dependent children and household income of $51,804 in 2018.The Gates purchased health care insurance on their state's exchange for total premiums of $6,800.A designated silver plan for their family in their state costs $9,700.Calculate the Gates' premium tax credit.

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Definitions:

Replacement Cost

Cost to replace a firm’s assets. Also called reproduction cost.

Economic Income

The sum of a company's net cash flow and the change in present value of a company's cash flows in a given period.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.