At age 30, Ravonda purchased a whole life insurance policy with a face value of $105,325. She is now 40 and wants to cancel her policy. Use Table 19-3 to calculate the amount of reduced paid-up insurance to which she is entitled. $10,427.18 O $19,590.45 $20,117.08 $33,072.05
Q: 5- DUSKY has annual sales of $40 million with the following costs: Cost of goods sold $12 million,…
A: NetIncome = Sales − CostofGoodsSold − FixedCosts − DepreciationExpense − InterestExpense −…
Q: Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley…
A: For computing the IRR the IRR function of excel will be used. The syntax is: IRR(values) Where…
Q: A non-dividend paying stock is selling for $52.50. The standard deviation of its returns is 45%…
A: To calculate the value of a call option with 6 months to expiry and a strike price of $50, we can…
Q: A project with the following costs are under consideration to determine its profitability. Using the…
A: Project Cash Flows:Year 0: Initial Cost = -$45,000Year 0.5 to Year 7.5 (8 semiannual…
Q: Please step by step solutions
A: It is given that the liquid X has more viscosity and surface tension than liquid Y. It means that…
Q: Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial…
A: The problem involves the determination of the bond price. It is based on the present value of the…
Q: It is the beginning of September and you have been offered the following deal to go heli-skiing. If…
A: Step 1:Step 2:Step 3:
Q: Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying…
A: To calculate the Net Present Value (NPV) of the project, we need to calculate the present value of…
Q: Earnhardt Driving School's 2018 balance sheet showed net fixed assets of $5.5 million, and the 2019…
A: Ending net fixed assets=Beginning Net fixed Assets + Net Capital Spending - Depreciation6,100,000 =…
Q: A owns 80% of B & 40% of C, purchased when B's reserve was £6,000, & C's £1,000. B's net assets at…
A: Dear Student, please note that these calculations are based on the assumption that the profit of A…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: To calculate the price per share using the Gordon Growth Model, we need to determine the free cash…
Q: pls help asap on both
A: Minimizing distortion: When welding, heat causes metal to expand, and as it cools, it contracts.…
Q: The stock price of Atlantis Corp. is $43 today. The risk-free rate of return is 10%, and Atlantis…
A: The objective of the question is to find the value of a put option on Atlantis Corp. stock with an…
Q: Question 3 of 34 You are working with the corporate finance team at your company to estimate how the…
A: Here's the breakdown of the difference between Net Income and Net Cash Flow:Net Income…
Q: hf.3
A: Receivable Turnover RatioThe receivable turnover ratio, also known as the accounts receivable…
Q: Complete the following, using ordinary interest. (Use Days in a year table.) Note: Do not round…
A: Step 1: Compute for the exact time. Use this tableMarch31 (-7 days)April30May31June30 (-20 days,…
Q: Problem 1 Intro A new project is expected to generate annual sales of $150,000 and annual costs of…
A: First, we need to calculate the operating profit before depreciation and taxes, also known as EBITDA…
Q: Give me three steps solution and explanation
A: To find the reward-to-risk ratio of Stock B, we first need to understand that the reward-to-risk…
Q: Henry is planning to purchase a Treasury bond with a coupon rate of 2.26% and face value of $100.…
A: The objective of this question is to calculate the purchase price of a Treasury bond given its…
Q: ⑪A forward contract written on a bond has 10 months remaining until maturity. The face value of the…
A: The theoretical forward price (F) of a bond:F = (S - C / 1+rf) (1 + rf)nGiven:S = $1025Face value of…
Q: Don't provide AI written solution.
A: Key references: General Finance
Q: None
A: Step 1: Let us first look at the information givenQuarterly Dividend = $0.59Equity Cost of Capital…
Q: Inflation is defined as: a) A decrease in the general level of prices b) An increase in the general…
A: The correct answer is b) An increase in the general level of prices. Inflation refers to the overall…
Q: MAA MATHEMATICAL ASSOCIATION OF AMERICA 20 Simple and Compound Interest / 10 Previous Problem…
A: Step 1:Solution-Step 2: Step 3: Step 4:
Q: You have found the following stock quote for RJW Enterprises, Incorporated, in the financial pages…
A: Step 1:a) Annual Dividend = Dividend Yield (YLD ) X Current stock price = 2.5% x $84 =…
Q: Crubici Problem List Next Problem HW 20 Simple and Compound Interest: Problem 2 (4 points) Find the…
A: To determine the length of the loan and the required monthly payments, follow these detailed…
Q: What is the primary goal of financial management? a) Maximizing shareholder wealth b) Maximizing…
A: The primary goal of financial management is to maximize shareholder wealth. This means making…
Q: Henry is planning to purchase a Treasury bond with a coupon rate of 2.71% and face value of $100.…
A: The correct answer is: (d) 94.4488Here's how to calculate the purchase price of the bond:Find the…
Q: 12.2S2035 is worth $10,300,000 with a yield rate of 13.76% and closing price of $88.67
A: The bond's market value matches the required cash to retire early, requiring approximately…
Q: Growing Perpetuity (and selling price) Carrie grandfather owns a farm. The farm earned $230,000 this…
A: The objective of the question is to calculate the value of the farm based on the given earnings,…
Q: If the interest rates rise by 1.5%, what is the change in net interest income assuming a parallel…
A: Part A: Change in Net Interest Income (NII) if Interest Rates Rise by 1.5% Given Data for ABC Bank:…
Q: 1. Suppose CAPM is the true model of stock returns, and the market expected return is 7% with 10%…
A: Given Data Market Expected Return (rm): 7% Market Volatility: 10% Risk-free Rate (rf): 3%Stock…
Q: An ARM loan, Loan Amount = $250,000; Monthly Payments, Index = 1-Year Treasury bill. Index at the…
A:
Q: Herry is planning to purchase a Treasury bond with a coupon rate of 2.26% and face value of $100.…
A: Explanation:To solve this question, we need to determine the purchase price of a bond with specific…
Q: explain Active bond management strategies with examples Valuation analysis Credit analysis. Yield…
A: Active bond management is a strategy used by portfolio managers to maximize returns from a bond…
Q: In the prospectus for the Brazos Aggressive Growth fund, the fee table indicates that the fund has a…
A: The objective of the question is to calculate the amount of the 12b-1 fee and the total expenses…
Q: 4. (i) A forward contract written on a bond has 10 months remaining until maturity. The face value…
A: (i) The theoretical forward price can be calculated using the formula:F = (S + C * PVIFA(r,n)) / (1…
Q: The expected return on the market is 12.36 %, the risk-free rate is 4.88 %, and the tax rate is…
A: Step 1: The steps are as follows: Sl. No.AB1Equity Shares 310,000.00 2Equity Price…
Q: Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of…
A: To determine the most profitable project using the replacement chain approach, we need to compare…
Q: Incorrect Question 16 0 / 1 pts Best Invest seeks to allocate $10,000 between three funds A, B, and…
A: The 10-quarter average performance for fund A is 7.40% We can calculate the average return for fund…
Q: Please correct answer and step by step solutions
A: Given:- Target production: 1 million kg of manganese per year- Actual production: 50% of target…
Q: Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial…
A: The objective of the question is to calculate the current duration of instrument B, which is a…
Q: The debt in the table below is retired by the sinking fund method. Interest payments on the debt are…
A: The size of the periodic interest expense is $308.75. See above.
Q: 4. NPV versus IRR Bruin, Inc., has identified the following two mutually exclusive projects: Year 0…
A: NPV Calculation and Decision:Given a required return of 10%, we can calculate the NPV for each…
Q: None
A: Insider trading refers to the buying or selling of a publicly traded company's stock by someone who…
Q: A non-dividend paying stock is selling for $52.50. The standard deviation of its returns is 45%…
A: To calculate the hedge ratio of the call, we use the Black-Scholes formula:d_1 =ln{S}/{X} + (r +…
Q: The CAMELS rating system is widely acknowledged as an international framework employed by bank…
A: The objective of the question is to understand how regulators use the CAMELS rating system to…
Q: Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial…
A: Question 2. Answer:Given the information provided for Joan's portfolio composition and the…
Q: Half of a portfolio consists of stock A, which has an expected return of 24.10% and a standard…
A: Option b: This option is correct. Step 1:We have to first calculate the expected return of the…
Q: If Maria uses her card only for her books this fall and next fall, how will these purchases affect…
A: The objective of the question is to determine how Maria's monthly payments will be affected if she…
Step by step
Solved in 2 steps
- Belinda, a 55 year old single woman with no dependents, has a $75,000 group term life insurance policy through her employer. Her employer pays the premiums on Belinda's group term life insurance policy. How much per year will Belinda have to include into her gross income associated with the cost of this insurance? Assume the cost of this insurance is $0.43 per month per $1,000 of coverage. Multiple Choice $0 $65 $129 None of the aboveCalculate the reduced paid-up insurance for Lee Chin, age 42, who purchased a $200,000 straight-life policy. At the end of year 20, Lee stopped paying premiums. (Use Table 20.2.) *****TABLE ATTACHED***** Reduced paid-up insuranceKathleen Osness, aged 38, a massage therapist, decided to take out a limited-payment life policy. She chose this since she expects her income to decline in future years. Kathleen decided to take out a 20-year payment life policy with a coverage amount of $90,000. (Use Table 20.1 and Table 20.2.) (for females subtract 3 years from the table.) *************TABLES ATTACHED************************ a. Calculate her annual premium. (Round your answer to the nearest cent.) Annual premium b. If she decides to stop paying premiums after 15 years, what will be her cash value? Cash value
- Darius, age 52, wants to pay no more than $800 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $5.38, what is the largest 15-year term policy he can buy without spending more than $800 annually? $538.000 $80.700 $148 700 $800,000Kathleen Osness, aged 38, a massage therapist, decided to take out a limited-payment life policy. She chose this since she expects her income to decline in future years. Kathleen decided to take out a 20-year payment life policy with a coverage amount of $90,000. (Use Table 20.1 and Table 20.2.) (for females subtract 3 years from the table.) *******************TABLE ATTACHED***************** a. Calculate her annual premium. (Round your answer to the nearest cent.) Annual premium b. If she decides to stop paying premiums after 15 years, what will be her cash value? Cash value11 of 20 Delilah Bundy is the policyowner-insured of a $300,000 whole life insurance policy that contains a typical misstatement of age provision. The insurer discovered that Ms. Bundy stated she was age 40 in the application for insurance, when actually she was only age 35 at the time of application. Ms. Bundy is still alive. In this situation, the insurer most likely will Ovoid the policy on the basis of the misstatement of Ms. Bundy's age charge Ms. Bundy an additional premium amount refund Ms. Bundy, the difference in the premium amount caused by the misstatement increase the policy's face amount to the amount that the premiums paid would have purchased for a female Previous Question
- Linda bought a life insurance policy whereby she insured herself for 1 million for a period of 10 years. Annual premium amount is 50,000. After 10 years, she received from the insurance company the amount of 600,000. 65. How much is the gross income? A. ZERO B. 100,000 C. 600,000 D. 1,000,000 66. In the above problem, assuming Linda died on the end of the fourth year of the policy and the beneficiary received 1 Million from the insurance company, how much is the gross income recognizable? A. ZERO B. 200,000 C. 800,000 D. 1,000,000LO.2 Alfred owned a term life insurance policy at the time he was diagnosed with a terminal illness. After paying $18,300 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $125,000. When Alfred died 18 months later, the company collected the face amount of the policy, $150,000. As a result of the sale of the policy, how much is Alfred required to include in his gross income?Ms. Asma is aged 40 years. She consulted Oman United Insurance Company to plan for the higher education of her daughter. Therefore, she asked for a straight life policy with a face value of OMR 80,000 with a semi-annually payment basis. How much will Ms. Asma reimbursed Oman United Insurance Company? 10-Year Fixed Rate 20-Year Fixed Rate Straight-Life Age Male Female Male Female Male Female 20 1.21 1.17 1.82 1.76 2.72 2.63 30 1.27 1.23 1.91 1.85 3.49 3.38 40 1.46 1.41 2.20 2.13 4.02 3.88 50 2.41 2.33 3.63 3.51 5.18 5.01 60 4.72 4.56 7.11 6.88 8.21 7.93 O a. OMR 158.304 b. OMR 80.704 C. OMR 27.160 d. OMR 310.4
- Ms. Asma is aged 40 years. She consulted Oman United Insurance Company to plan for the higher education of her daughter. Therefore, she asked for a straight life policy with a face value of OMR 80,000 with a semi- annually payment basis. How much will Ms. Asma reimbursed Oman United Insurance Company? 10-Year Fixed Rate 20-Year Fixed Rate Straight-Life Age Male Female Male Female Male Female 20 1.21 1.17 1.82 1.76 2.72 2.63 30 1.27 1.23 1.91 1.85 3.49 3.38 40 1.46 1.41 2.20 2.13 4.02 3.88 50 2.41 2.33 3.63 3.51 5.18 5.01 60 4.72 4.56 7.11 6.88 8.21 7.93 a. OMR 158.304 b. OMR 27.160 C. OMR 80.704 d. OMR 310.4Barbara has homeowner’s insurance with $100001 face amount.She recently incurred fire damage of $50000 during the policy period. If the insurer values the home to be $150000, what would her insurance benefit before the deductible? Choices: $33334 $100000 $0 $50001Julia pays $500 for an insurance policy with anexpected value of $120. Explain why this is a rational choice for Julia
