DISTRIBUCIONES MUESTRALES Y ESTIMACIONES

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of var

ziro4ka [17]

Complete Question:

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:

Group of answer choices

A) the safety of the principal invested.

B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

C) the yield is always higher than mortgage yields.

D) the yield is always higher than bond yields.

Answer:

B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Explanation:

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.

5 0

3 years ago

Assume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data

Kobotan [32]

Answer:

Cost of equity= 10,50%

Explanation:

The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Cost of equity= (D1/P0)+g

D1= next year dividend (D0*

P0=actual price

g= growth rate of dividends

In this exercise:

D1=D0*(1+g)=0,90*1,07=$0,963

P0=$27,50

g=0,07

Cost of equity= 0,963/27,5+0,07=0,1051=10,50%

8 0

3 years ago

Segregation of duties controls dictates that the collection and recording functions be kept separate from each other. However, t

nekit [7.7K]

Answer:

Option D All of the above statements are correct.

Explanation:

The solution of the issue is software integration and making flow of information on timely basis across the company. The recommended solutions given in the question are correct because:

Establishing a lockbox arrangement is similar to having a single company bank account. This means that the company will have a confirmation from the bank that the payment is received by the bank from customers.
The remittance advice sent with payment helps to solve the misunderstanding, assist in recording transaction to keep the system updated and provides resistance to fraudulent practice.
The mailroom personnel who require mailing of trade receivable balance which the customers owe to company and trade payable balance which the company owes to suppliers. This avoids the company paying illegitimate amounts and receiving the amounts which the customers actually should pay to the company.

So all of the statements are correct.

5 0

3 years ago

Every morning, peter goes to one of the nearby convenience stores and buys a carton of levin's chocolate milk for breakfast. whe

Nady [450]

Answer:

a. brand loyalty

Explanation:

As Peter goes to the nearby shop every day and buys the same brand carton of levins chocolate milk for breakfast this shows that the peters are a brand loyal customers as he goes without the milk if not buying the popular brand.

5 0

3 years ago

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents bala

Alchen [17]

Answer and Explanation:

The preparation of the cash flow statement using the direct method is presented below:

Redwood Inc.

Cash flow statement

For the year ended December 31, 2016

Cash flow from operating activities

Cash Received from Customers $1,940

Interest on investments $220

Less: Interest on debt -$320

Less: Income tax -$84

Less: Purchase of inventory -$1,000

Less: Operating expenses -$520

Net cash provided by operating activities $236

Cash flow from investing activities

Sale of land $120

Less: Purchase of equipment -$4,500

Net cash used by investing activities -$4,380

Cash flow from financing activities

Sale of common stock $640

Issuance of debt securities $2,040

Less: Debt principal reduction -$1,540

Less: Dividends on common stock -$220

Net cash provided by financing activities $920

Decrease in cash -$3,224

Add: Beginning cash balance $5,600

Ending cash balance $2,376

The items which shows in a positive sign indicates the cash inflow and the items which shows in a negative sign indicates the cash outflow and the same is to be considered

5 0

3 years ago