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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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Answer:

$27,600

Explanation:

Amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend:

= Shares issued * Percentage of stock dividend * Market price

= 46,000 shares * 2% * $30

= 46000*0.02*$30

= $27,600

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the answer is B.)

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1 year ago
Tangible assets are first recorded at ______. Multiple choice question. current market value or resale value the amount of cash
worty [1.4K]

Tangible assets are first recorded at costs to acquire them for use.

  • Tangible assets are  fixed assets which is  referred to as the physical assets which a company/Buisness owns to carry out its daily activities in order to create profit .

  • They include<em> investments, cash, inventory, vehicles, office equipment, buildings,machines, </em>etc

Tangible assets are very important to businesses  as they

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  • In case of emergency, they can generate cash

Tangible assets are first recorded in the balance sheet as costs to acquire them for use.

See more here: brainly.com/question/23469284

7 0
2 years ago
Given the future value, which of the following will contribute to a lower present value? A. Higher discount rate B. Fewer time p
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D

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7 0
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