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SpyIntel [72]
3 years ago
12

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year fo

rever. If the required return on this investment is 5.8 percent, how much will you pay for the policy
Business
1 answer:
Sati [7]3 years ago
4 0

Answer:

the amount that should be paid for the policy is $431,034.48

Explanation:

The computation of the amount that should be paid for the policy is given below:

Present value of perpetual cash flow = Perpetual cash flow ÷ Rate of return

= $25,000 ÷ 5.8%

= $431,034.48

Hence, the amount that should be paid for the policy is $431,034.48

The same should be considered and relevant

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A demand schedule illustrates the relationship between price and quantity in the format of a(n) ______.
dmitriy555 [2]

A demand schedule illustrates the relationship between price and quantity in the format of a table.

A demand schedule generally consists of two columns. The first column shows the price of a product in ascending and descending order. The second column shows the quantity of the product which is desired or demanded at that price.

In economics, a demand schedule is defined as a table which shows the quantity demanded of a good and service at the different price levels. A demand schedule can also be graphed as a continuous demand curve on the graph  chart where the Y-axis represents the price and the X-axis represents the quantity of the product or service.

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7 0
2 years ago
Involves obtaining funds and keeping<br> accurate and useful records
Stolb23 [73]
I believe that the answer is Financial Management
6 0
3 years ago
Bases on the following information calculate the sustainable growth rate for Southern Light.
Anarel [89]

Answer:

20.91%

Explanation:

The following values is the details of a report gotten from Southern Light

Profit margin= 8.4%

Capital intensity ratio= 0.45

Debt to equity ratio= 0.60

Net income= $95,000

Dividend= $40,000

The first step is to calculate the return on equity

ROE= Profit margin×Total assets turnover×equity multiplier

= 8.4/100×1/0.45×(1+0.60)

= 0.084×2.222×1.6

= 0.2987×100

= 29.87%

The next step is to calculate the Plowback ratio

Plowback ratio= 1-(dividend/net income)

= 1-($40,000/$95,000)

= 1-0.421

= 0.579

Therefore, the sustainable growth rate can be calculated as follows

= ROE×Plowback ratio/1-ROE(Plowback ratio)

= 0.2987×0.579/1-0.2987(0.579)

= 0.17295/1-0.17295

= 0.17295/0.8271

= 0.2091×100

= 20.91%

Hence the sustainable growth rate for southern light is 20.91%

3 0
3 years ago
All of the following are benefits of participating in a QRIS system except
castortr0y [4]
All of the following are benefits of participating in a QRIS system except (B) tax credits. QRIS or Quality Rating and Improvement System is a framework toward quality improvement and rating in building strong early care and education system. As early as childhood, this tool can help in the foundation of the children, especially in education.
8 0
4 years ago
Read 2 more answers
A study of the potential demand for a new hospitality and travel business is called? strategic alliance
Ymorist [56]

Answer:

Situation  analysis

Explanation:

situation analysis is an analysis done before the start of a business and it is a part of a business plan. it includes an analysis of the firm's abilities, its potential customers, potential competitors and economy

Market analysis is the analysis of the market of a good. Market analysis includes :

  • analysis of the customers and their purchasing patterns
  • analysis of competitors
  • an analysis of the economy

A SWOT analysis is an analysis of a firms strengths, weaknesses, and opportunities

3 0
3 years ago
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