If this question has the same list of choices as the ones posted before, the statement that does not accurately describe a characteristic of cash value for whole life insurance is:
"<span>Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value."</span>
Answer:
1. $100,000 and 25%
2. $137,200 and 34.3%
3. $150,000 and 27%
Explanation:
1. It does not expand
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
2. It expands and issue $160,000 in debt
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
3. It expands and raises equity of $160000
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%
Answer:
B. Rescission and Restitution
Explanation:
Answer:
$7.90 per unit
Explanation:
The computation of the minimum price on these defective units is shown below:
It is equivalent to the selling & admin variable cost per unit i.e. $7.90 per unit
oAs all the other cost would be considered as a sunk cost because the product is already generated and the fixed cost is not considered as it would remain the same whether the production is increase or not
Therefore the second option is correct
