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DochEvi [55]
4 years ago
5

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115

,000. What is the monthly return on this investment vehicle
Business
1 answer:
Varvara68 [4.7K]4 years ago
5 0

Answer:

1.3%

Explanation:

To find the monthly return , the formula is =

Interest payment/ present value

$15,000 / $115,000 = 0.013043 = 1.3%

I hope my answer helps you

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Assume that activity G has the following times: Early start time 7 days Early finish time 13 days Late start time 15 days Late f
Aloiza [94]

Answer:

The correct answer is Activity G has s slack time of 8 days.

5 0
3 years ago
Nash Incorporated factored $156,000 of accounts receivable with Crane Factors Inc. on a without-recourse basis. Crane assesses a
ella [17]

Answer:

Nash Incorporated,

Dr Cash $143,520

Dr Due from Factor $9,360

Dr Loss on Sale of Receivables $3,120

Cr Accounts Receivable $156,000

Crane Factors

Dr Accounts Receivable $156,000,

Cr Due to Customer Nash $9,360

Cr Interest Revenue $3,120

Cr Cash $143,520

Explanation:

Preparation of the journal entry for Nash Incorporated and Crane Factors to record the factoring of the accounts receivable to Crane.

Nash Incorporated,

Dr Cash $143,520

($156,000-$9,360-$3,120)

Dr Due from Factor $9,360

(6%*$156,000)

Dr Loss on Sale of Receivables $3,120

(2%*156,000)

Cr Accounts Receivable $156,000,

Crane Factors

Dr Accounts Receivable $156,000,

Cr Due to Customer Nash $9,360

(6%*$156,000)

Cr Interest Revenue $3,120

(2%*156,000),

Cr Cash $143,520

($156,000-$9,360-$3,120)

8 0
3 years ago
Oil Wells offers 5.65 percent coupon bonds with semiannual payments and a yield to maturity of 6.94 percent. The bonds mature in
Lorico [155]

Answer:

$826.95

Explanation:

To determine the price of Oil Wells' bonds, we can use the following formula:

bond price = semiannual coupon x [(1 - {1 / [1 + (maturity yield / 2)](years × 2)}) / (.0694 / 2)] + face value / [1 + (maturity yield / 2)](years × 2)

Bond price = $28.25 × [(1 - {1 / [1 + (.0694 / 2)](7 × 2)}) / (.0694 / 2)] +       $1,000 / [1 + (.0694 / 2)](7 × 2)

Bond price = $757,92 + $69.03 = $826.95

7 0
4 years ago
Read 2 more answers
Jim wants to buy a car, but he’ll probably only need it for a couple of years. He has a short commute to work, so he won’t be pu
PolarNik [594]
He should lease the car he is not going to need it for a long tme

5 0
3 years ago
Identify factors that could prevent an older, established company from effecting an enterprise-wide, customer-centric culture.
leva [86]

Answer:

A more established company may find it difficult to implement an enterprise-wide, customer-centric culture due to the following reasons:

A) Existence of a Multi-Product Business Model

A business entity that is well established with a lot of years under its belt will find it a tough challenge to shift from a product-oriented business model to a customer-oriented business model.

To be product-focused simply means that that a company has woven its organisational structure around products. For examples, a company that is into the gaming business may have teams for their Sports Betting Section, another for their online gaming section, game hardware section, gaming apps section etc.

First, for these various teams, their performance metric will largely depend on how functionally efficient their products are.  

Second, techy or geeky staff are seldom efficient when it comes to emotional intelligence - a key requirement for being customer efficient.

One way to handle this is to ensure that there is a central Customer Relationship Management team that oversees the customers for each product.

B) Organisational Inflexibility

As direct to the point as it sounds, getting market intelligence for with the intention to use them for decision making is challenging. What is tougher is the ability to implement the insights from such intelligence to effect a turn around in the way customers perceive and respond to a company's offerings.

The ability to quickly take gather market intel, agree on a strategic direction based on same and execute can be referred to organisational agility.  

The more bureaucratic and hierarchical an organisation is (this, by the way, characterises older and more established business systems) the less agile it is likely to be.

Cheers!

   

3 0
3 years ago
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