Answer:
Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums and level-premiums for the next ten years. The level premiums were always higher than the yearly renewable term premiums. Based on this chart, Dennis is convinced he should purchase yearly renewable term insurance. What is Dennis overlooking?
"Age" and "Amount of coverage" is the important factor that is being overlooked.
Explanation:
"Age" and "Amount of coverage" is the important factor that is being overlooked.
In level premium insurance, premium prices remain unchanged throughout the term whereas, in yearly renewable term premiums, premium rates rise as the policies age.
Additionally, in level premium, the amount of coverage offered increases over time at no additional expense.
Answer: product differentiation
Explanation:
From the question, we are informed that Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs.
This is an example of a barrier to entry which is known as product differentiation. Poduct differentiation is when a company makes its product different from other similar products so that the product will be more attractive and unique from others.
Answer: Option (B) is correct.
Explanation:
Open market operations: In Open market operations, there is a buying and selling of government securities by the central bank of a nation. It is a monetary policy instrument that is used to control money supply in an economy.
If Fed sells the government securities in the open market then as a result there is a transfer of from public to Fed. So, there is a fall in the money supply because banks lose liquidity. Now, banks are able to make fewer loans to the borrowers and checking deposits also decreases.
Answer:
The present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57
Explanation:
Solution:
Given that
The present value =∑ ⁿ t=1 cf/ (1 +r)t
where cf= cash flow
r =the required rate of return
t = the number of years
Now
The present value will be:
cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6
Hence,
cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years
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