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3 years ago

What happens if a deferred annuity is surrendered before the annuitization period?

Business

1 answer:

Lana71 [14]3 years ago

5 0

Answer:

Annuity is a form of investment made at equal intervals. deposits to a saving account on a monthly basis is an example of annuity. The surrender period is the time an investor have to wait before to withdraw from an annuity without any penalty

If a person defers annuity before the annuitization period then the owner receives the premium payments that he has paid into the annuity and the interest. The surrender charge is deducted from the amount returned.

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What adjustments would need to be made in the Operating Section of the statement of cash flows prepared under the indirect metho

S_A_V [24]

Add back noncash expenses, such as depreciation, amortization, and depletion.

Explanation:

3 0

3 years ago

You have taken a job as an entry-level analyst, and your boss has asked you to find the expected value of Adams Furniture’s stoc

11111nata11111 [884]

Answer:

$67.20

Explanation:

Given:

Dividends paid, D₀ = $3.20

Growth rate = 5%

Required return rate = 10%

Now,

The expected value of the company’s stock

= $\frac{\textup{Last dividend( 1 + growth rate)}}{\textup{required return-growth rate}}$

on substituting the respective values, we have

= $\frac{\$3.20\times(1+0.05)}{\textup{0.1-0.05}}$

= $67.20

Hence, The correct answer is option $67.20

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3 years ago

How do keynesian economic policies differ from the traditional laissez-faire policies developed by adam smith?

shusha [124]

Keynesian economic basically means that the goverment has to step in and try to stimulate economic wealth. This is were macroeconomics comes to play. Laissez fair in Belgium means hands off or lay. This explains why laissez fair is a strategy our previous presidents used to stop the Great Depression. In other words it means the govermeant steps out of helping hand and count on capitalism.

5 0

3 years ago

Norman Co. wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end net cash flows are $12

umka21 [38]

Answer:

Year Cashflow [email protected]% PV

$ $

0 (40,000) 1 (40,000)

1 12,000 0.9259 11,111

2 12,000 0.8573 10,288

3 12,000 0.7938 9,526

4 16,000 0.7350 11,760

NPV  2,685

Explanation:

Net present value is the difference between present value of cash inflows and initial outlay. The present value of cash inflows were obtained by multiplying the cash inflows by discount factors. The discount factors were calculated using the formula (1 + r)-n, where n represents number of years and r denotes discount rate.

7 0

3 years ago

The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 652,000 Direct l

Tanzania [10]

Answer:

Beginning Raw Materials 8,000

Purchases 133,000

Ending Raw materials (10,100)

Used into production 130,900

Beginning WIP 5,400

cost added 416,900

total cost 422,300

ending WIP (20,400)

COGM 401,900

Beginning FG 70,000

COGM 401,900

goods available 471,900

ending FG (25,500)

COGG 446,400

Overhead 18,000 udnerapplied

Sales 652,000

COGM (464,400) - (446,400 + 18,000)

Gross Profit 187, 600‬

S&A (145,000)

Net income 42,600

Explanation:

We work the following reasoning:

the beginning inventory are the materials at hand at the beginning then we add up the purchases and compare with ending ivnentory. The difference was used into production.

Same thinking applpies to how to calculate for cost of goods manufactured and cost of goods sold.

side calculation:

cost added during the period:

mateirals used + direct labor + applied overhead

Overhead:

actual 223,000

applies 205,000

as the cost were higher we will adjust to increase overhead by 18,000 It was underapplied

This will increase the COGS in the income statement.

Net income:

we will calculate the net income by subtracting the COGS and the expenses from the sales revenues.

5 0

3 years ago