Life insurance is a long term insurance product that I would consider buying in the future. Life insurance is paid by an individual in a family for themself or someone else that can be cashed in when that individual dies. Those with life insurance pay monthly or annual premiums towards their life insurance policy in the event they pass and need to have funds available for their family. There are stipulations to when money can be withdrawn from the life insurance policy and how, but most of that is subject to the type of policy. I would pick life insurance because as a mom of three kids I would want to make sure I have funds in place in the event something were to happen to me.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
The budgeted selling price per unit is $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit. Regarding credit sales, 20% are collected in the month of the sale and 80% in the following month.
Cash collection May:
From April= $125*(0.80*7,600)= $760,000
From May= 125*(0.20*10,500)= $262,500
Total= $1,022,500
Answer: The P/E multiple and EVA approach and their use to value common stock.
P/E multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investor's willingness towards the current market price of the stock.
Economic value added(EVA): this approach is a measure to evaluate a company stock based on economic value, it has added at a specified time. It considers the opportunity cost of capital invested in the business and the next operating profit generated by the business.
Explanation: The P/E multiple is the basis to analyze the stock price with the earnings so that the appropriate value of a stock is estimated.
The P/E approach can be used as a starting point in stock valuation. If a stock's P/E ratio is well above its industry average and if the stock's growth potential and risk are similar to other firms in the industry, the stock's price may be too high. To estimate a ball-park value multiply the firm's EPS by the industry average P/E ratio.
An alternative approach is based on the concept of Economic Value Added (EVA). Remember, EVA = Equity(ROE - rs). Companies increase their EVA by investing in projects that provide shareholders with returns greater than the cost of capital. When you purchase a firm's stock, you receive more than just the book value of equity—you also receive a claim on all future value that is created by the firm's managers.
Answer:
reducing unemployment and raising GDP
and increasing the investment part of GDP
Explanation:
- This is the expansion monetary policy. Hiring more people results in business expansion, which reduces unemployment. In addition, more goods and services will be available that will increase GDP as a result of trade expansion.
- Finally, as business investment increases, so does the share of investment in GDP.
- correct answer is reducing unemployment and raising GDP
and increasing the investment part of GDP