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Sedaia [141]
3 years ago
15

Joe came into a sizeable inheritance about 5 years ago. His investment advisor representative recommended putting the majority i

f the inheritance into a variable annuity, once Joe had maxed out other tax-deferred products. Joe has seen the funds in the variable annuity grow over the past 5 years, but he wants to know more about how the variable annuity works and where the increases in value originate. Which of the following is a good statement from the IAR related to how variable annuities grow?A) "Variable annuities appreciate in value as the stock of the issuer of the variable annuity goes up."B) "Variable annuities have a fixed pay-out rate which is determined at the time of investment. Investors can look back at their original documents related to the variable annuity to see what this pre-determined rate of growth is."C) "Variable annuities include investments in various products, normally mutual funds, so the value of the variable annuity will fluctuate with increases or decreases in the values of the products held within the variable annuity."D) "You should contact the issuer of the variable annuity to find out more information on how it works. I am simply your investment advisor."
Business
1 answer:
nlexa [21]3 years ago
6 0

Answer:

C) "Variable annuities include investments in various products, normally mutual funds, so the value of the variable annuity will fluctuate with increases or decreases in the values of the products held within the variable annuity."

Explanation:

Joe's investment adviser should have discussed what type of investment he was recommending and why he was recommending them. If Joe wants to know more about his investments, his IAR has a fiduciary obligation to explain how a variable annuity works.

Variable annuities are a type of investment vehicle, which allows tax deferral on investment growth. Variable annuities are called variable because the investor decides which investment he will take and the value of the investments vary in time.

Usually variable annuities include different mutual funds, and if the price of the shares of the mutual funds vary, so will the value of the annuity.

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Chief financial officer Justin took his family on an Asian vacation using the company jet. He excuses his behavior by stating, "
umka2103 [35]

Answer:

rationalizing            

Explanation:

Rationalization in psychology or logic is indeed a defensive mechanism wherein problematic actions or emotions are defended and clarified in an obviously logical or rational way to escape the mechanistic explanation, and are rendered actively bearable or perhaps even impressive and preferable by convincing methods.

Rationalization facilitates unreasonable or unacceptable behavior motivations or emotions and sometimes includes hypothesizing ad haste. This cycle goes from completely aware to mostly unaware. Individuals rationalize for different reasons. 

7 0
4 years ago
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis
Law Incorporation [45]

Answer:

b) The $355,000 manufacturing cost of the tables already incurred.

Explanation:

The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the

Tables, or sell them as they now are

All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.

So, the correct answer is b

7 0
4 years ago
Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.
dalvyx [7]

a.

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0
3 years ago
Munif wants to expand his business and plans to use the 5 acre property he owns and rents to a local cattle rancher for $5000/ye
Jobisdone [24]

Answer:

Explicit cost = $2,000,000

Explanation:

Explicit costs

<u><em>Explicit costs</em></u><em> are out-of-pocket expenditures incurred for the purpose of a project or business, They represent  cash outflow expenses which actually involve the payment for cash. For example, the  $2 million cost of building the warehouse and office. </em>

<em />

Implicit costs

<em>On the other hand</em><u><em>, implicit costs </em></u><em>are the value of the benefit sacrificed in favor of a decision. They are known as opportunity cost. For example, the $5000 per year which Munif would forgo if he expands the business. </em>

5 0
4 years ago
Can you get documents notarized for someone else
xenn [34]
No you have to have the person getting them notarized get them notarized
8 0
3 years ago
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