Answer:
Option B (bail-out) is the correct approach.
Explanation:
- For something like a variable annuity, a clause states that even though the investment on either the annuity happens to fall underneath a specified amount, the insured person will make additional withdrawal effects through loss.
- It eliminates the owner from those in the contract unless the transactions do not exceed a sum negotiated upon.
Some other available choices do not apply to the types of situations in question. So that the argument presented above should be appropriate.
I think this is specific to your class or we need a bit more context!
Answer:
False.
Explanation:
The Victoria's part is true she is pursuing cost leadership by keeping it's price low although the Walmart's example is not related to differentiation strategy of competitive advantage. Because keeping mix of products is not differentiation, it's not unique.
- Porter suggested 4 strategies and he believed that by using one of these strategies companies can gain <em>competitive advantage. </em>
The 4 strategies for competitive advantage:
- Cost Focus.
- Cost leadership.
- Differentiation Focus.
- Differentiation Leadership.
We can solve this problem by using the formula for
finding the present value given the annuity values. The formula is given as:
P = A * [(1 + i)^n – 1] / i (1 + i)^n
Where,
P = present value of the annuity
A = the annuity value = $26,000
i = interest rate = 0.06
n = number of years = 90 – 65 = 25
Substituting the given values to the equation:
P = 26,000 * [(1 + 0.06)^25 – 1] / 0.06 (1 + 0.06)^25
P = 26,000 * 12.783356183
P = $332,367.26
<span>Therefore the present value of his social security
benefits will be about $332,367.26</span>
Answer:
It should maintain the same per share dividend.
Explanation:
If you keep a constant per share dividend, for example, $1 per share, as the price of the shares increases, the payout ratio will start to decrease. This means that the company's retention rate will increase and it will have more money to invest in future projects. The company needs funds and it can save it (as retained earnings), borrow it (as debt) or issue equity. The options are limited.
