Answer:
$444,444.44
Explanation:
Larry's life insurance corporation is trying to sell an investment policy that will pay you and your heirs a total amount of $32,000 per year
The required return on this investment is 7.2%
= 7.2/100
= 0.072
Since the cash flow is a perpetuity then, the amount that will be paid for the policy can be calculated as follows
PV= C/r
= $32,000/0.072
= $444,444.44
Hence the amount of money that will be paid for the policy is $444,444.44
A thesis statement should be clearly stated and narrowly focused. False
As the CFO has been asked to present a financing plan to the board, his best approach to keep the company from being heavily leveraged from product launch will be to maintain a moderate debt level.
<h3>What do we mean by Financial leverage?</h3>
Basically, a leverage means the use of debt (borrowed capital) in order to undertake an investment or project. The result of the process is to multiply the potential returns from a project but it will also multiply the potential downside risk in case the investment does not pan out.
Going forward, when we refers to a company as "highly leveraged," this means that item has more debt than equity. In conclusion, most investors use leverage to significantly increase the returns that can be provided on an investment.
Read more about Financial leverage
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Answer:
$ 48,000
$3,200
Explanation:
Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.
Reason -
Business income = 120,000×40%
= 
= $48,000
⇒Business income = $48,000
Tax-exempt = 8,000×40%
= 
= $3,200
⇒Tax-exempt = $3,200
