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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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Dana is watching television when a commercial for a brand of bathroom cleaner comes on. She is not very interested in the produc
Len [333]

Answer:

Peripheral route.

Explanation:

The peripheral route to persuasion occurs when the listener decides whether to agree with the message based on other cues besides the strength of the arguments or ideas in the message.

8 0
3 years ago
If Chester Corp. were to buy all of it's shares outstanding at its current price, how much would it cost Chester Corp, excluding
Anvisha [2.4K]

Answer:

$82, 727, 931

Explanation:

At a present stock price of $24.40 , the cost of buying all outstanding 3,390, 489 shares is calculated by multiplying the present stock price by the total outstanding shares 24.40 * 3, 390, 489 = 82, 727, 931

6 0
3 years ago
Suppose the state of Florida passes a law that increases the tax on alcoholic beverages. As a result, resi-dents in Florida star
Volgvan

Answer:

Residents (people's) reaction to Incentives

Explanation:

An incentive represents something, an action or a law that causes people to act or change their behaviour about something at a particular time. Basically, incentives work by making rewards available to individuals who change their behaviour on a targeted issue.

Usually, since people rationally compare the costs and benefits of their actions, incentives gives them the opportunity to raise their perception of this costs and benefits and also induces them to respond.

Florida increases the tax on alcoholic beverages, the people still see the benefits of taking alcohol but not at the increased, the reaction therefore, is to purchase in surrounding states where they are still cheaper without a tax increase.

It should be noted from the Florida example that the reaction of people to incentives can both be negative and positive. This example shows a negative response as a result of raised costs when compared with benefits.

3 0
4 years ago
Managers choose the manufacturing location for each product based on where the best combination of cost, quality, and technology
Bingel [31]

Answer:

The correct answer is letter "D": rationalization.

Explanation:

Rationalization refers to the restructuring of a company in terms of changing its operational processes, strategy, or corporate size on an attempt of increasing its efficiency. That stage is reached by reducing costs and increasing profits. The introduction of a new product could push a firm to rationalize whether to expand or cut part of its operations.

5 0
3 years ago
Coronado Company sells merchandise on account for $4600 to Wildhorse Company with credit terms of 2/10, n/30. Wildhorse Company
telo118 [61]

Answer:

$3,528

Explanation:

The computation of the amount of the check after considering the discount period is shown below:

= Sale value fo merchandise - returned goods - discount paid

= $4,600 - $1,000 - $3,600 × 2%

= $3,600 - $72

= $3,528

By applying the above formula we can get the amount of the check and the same is to be considered

hence, the amount of the check is $3,528

6 0
3 years ago
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