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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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15.2 Calculating Flotation Costs: The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, Wiley received $
Marina CMI [18]

Answer:

23.16%

Explanation:

net amount of money received by Wliey Oakley = 7,750,000 stocks x $21.39 per stock = $165,772,500

total flotation costs including direct and indirect costs = [($26.30 - $21.39) x 7,500,000] + $1,350,000 + $210,000 = $38,385,000

flotation costs as a percentage of funds raised = $38,385,000 / $165,772,500 = 0.2316 = 23.16%

4 0
3 years ago
Which corporation has a so-called "revolving door" regarding the number of former employees working in the economic sectors of v
Soloha48 [4]

Complete Question:

Which corporation has a so-called "revolving door" regarding the number of former employees working in the economic sectors of various administrations?

A) AIG

B) Goldman Sachs

C) JP Morgan Chase

D) Citigroup

Answer:

The corporation that has the so-called "revolving door" regarding the number of former employees working in the economic sectors of various administrations is:

B) Goldman Sachs

Explanation:

"Revolving door" refers to the ease that former employees can move from the private sector to the public sector and vice-versa.  Several Goldman Sachs former employees have left the corporation to work in various government positions.  Many of these employers argue that they have taken advantage of their expertise rather than their connections to move from one sector to another.  Others argue that they bring in invaluable knowledge and skills to bear upon policy formations and other regulatory roles.

3 0
3 years ago
An increase in the rate of expected inflation will Group of answer choices shift the demand for loanable funds to the left (down
Brums [2.3K]

Answer:

shift demand and supply for loanable funds to the right (up), increasing interest rates.

Explanation:

According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.

As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.

Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out

4 0
4 years ago
Which principle of design is used to modify the shape of a design
storchak [24]

Answer:

Principles applied to the elements of design that bring them together into one design. How one applies these principles determines how successful a design may be

8 0
3 years ago
"corporate social responsibility (CSR) refers to"
Mademuasel [1]

Answer:

The correct answer is letter "C": ethical expectation that society has for business.

Explanation:

Corporate Social Responsibility (CSR) refers to the efforts companies make to have a positive influence on their surrounding environment and society. CSR implies operating harming the atmosphere the least possible, training employees in ethical behavior inside and outside the organization and engaging in charitable activities in favor of the most in-need.

CSR takes care of three dimensions: <em>planet, people, </em>and <em>profit</em>. <em>CSR, also called, corporate citizenship, reflect the view society has of the business.</em>

3 0
3 years ago
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