Answer:
c. This contract is void.
Explanation:
Since in the question it is mentioned that one day Anna received a phone call from the health insurance salesman and she purchase a $400 medigap insurance policy so the contract should be void in the eyes of law as it is not valid in terms of law plus nothing is specified for whom she purchased the policy for $400
Therefore the correct option is c.
Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 12 % annual dividend and a $100 par value and was sold at $97.50 per shar
Answer:
A) $56.5
Explanation:
Data:
Project S
Initial cost $10,000
Y1 CF = $6,000
y2 CF = $8,000
Project L
Initial Investment = $10,000
Y1-Y4 CF = $4,373
Solution:
<u>For Project S</u>
We shall prolong the project to four years so it can be easily compared to project L
Following shall be the cashflow stream:
Y0=-$10,000 Y1=$6,000 Y2=-$2,000($8,000 CF - $10,000 outlay for prolonging the project second time) Y3=$6,000 Y4=$8,000
Now to discount the cashflow
<u>For Project L</u>
In order to calculate present value of the annuity, following formula will be used:
<em>NPV = Initial outlay - PV</em>
Now, we can easily calculate how much value will the firm gain or lose if Project L is selected over Project S
<em>*all figures are rounded off to two decimal points*</em>
Answer:
a. True
Explanation:
The foreign exchange market is a market for converting the currency of one country into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
The answer to this question is Budget Deficit. Budget Deficit
shows that the government spending is exceeding the government revenue in a
year. In order to resolve the problem in budget deficit the government should
cut the expenditures or the government spending and find a way to increase
revenue of the country.
