What is the impact of deferred annuities in consideration to business matter?

Q: A premium bond is a bond that sells for less than its par value. O True False

A: A bond can be a premium bond or a discount bond. This depends on the price of the bond at which it i...

Q: Describe the Rights of the Surety.

A: Meaning of surety Its a contract of guarantee which  shall also satisfy all the important conditions...

Q: Bello, Inc., has a total debt ratio of .87.   a. What is its debt-equity ratio? (Do not round interm...

A: Debt ratio =(Total debt)/(Total assets)  

Q: A $35,000 loan at 4% compounded quarterly is to be repaid with six equal quarterly payments. The fir...

A: The total present value of all future installments to be paid is equal to the current value of loan....

Q: Consider a home mortgage of $125,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly pa...

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv], [type]...

Q: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if ...

A: Given: Bond cost (PV) $50 Years(NPER) 22 Future value(FV) $100  

Q: Problem 11 Intro Assume that the CAPM holds. One stock has an expected return of 9% and beta of 0.5....

A: CAPM = capital asset pricing Model The formula for calculating the expected return of an asset given...

Q: If you have $2,500 to invest and need to withdraw $4,430 at some time in the future, what is the min...

A: Amount for investment =  $2500 Interest rate = 5% Withdraw after some time = $4,430

Q: 1. Assume that capital markets are perfect: there are no transactions costs or taxes, no bankruptcy ...

A: With perfect capital market and without tax, the value of levered firm (VL) is equal to the value of...

Q: Dupont Identity of this company Dupont: ROE = Profit Margin * Asset Turnover * Financial Leverage ...

A: DuPont ROE According to DuPont analysis, ROE is calculated as shown below. ROE=Profit margin×Asset t...

Q: Given the capital allocation line, an investor's optimal complete portfolio is the portfolio that A)...

A: Capital Allocation Line (or CAL) refers to that line in finance that shows risk and reward profile o...

Q: A coin sold at auction in 2017 for $1,252,000. The coin had a face value of $5 when it was issued in...

A: Rate of Return can be calculated as the net gain or loss earned by an investment divided by the net ...

Q: Pearson's books had total markdowns of $1,125 and a net markdown of $434 for the month of October. C...

A: Mark down is the reduction in price of an item below its original selling price. Markup cancellation...

Q: 1. Describe the importance of a credit score for financial planning.

A: Since multiple questions are asked , we will answer 1st question for you as per prescribed guideline...

Q: Shiro’s grandfather has just announced that he’s opened a saving account for Shiro with a deposit of...

A:

Q: or something to satisfy the medium-of-exchange function of money, it must be  readily exchangeable ...

A: Medium of exchange means that money should be used as an intermediary between a buyer and seller. Su...

Q: Garrett wants to accumulate at least $35,000 by depositing $1,5 month into a fund that earns interes...

A: Amount to be accumulated is $35000 Monthly deposit is $1500. Rate 4.5% compounded monthly

Q: a) Determine the price of Bond X if it has 3 years to maturity, a par-value of $2500, a coupon rate ...

A: Given, Par value of bond is $2500 Coupon rate is 5%. Yield is 9%.

Q: 1. The minimum required return by Cross-Ocean’s debtholders  2. The minimum required return by Cross...

A: Cost of capital means the return a company must earn from its investments to pay its capital provide...

Q: Edward made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years, t...

A: Effective annual rate = (1 + Monthly interest rate)^12 - 1 = (1 + 3.75%/12)^12 - 1 =0.03815129256  o...

Q: below the letter representing,  write the importance of such research in daily life.  A. Digital Ag...

A: Uses of these researches in daily life. A. Digital Age This is to state that the curve of technologi...

Q: Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets a...

A: We need to use the following formulas for ratio Total debt ratio =Total liabilities/total assets Deb...

Q: = Homework: Homework 3 Question 15, 8.2.5 Part 1 of 3 An investor purchased a 182-day, $100,000.00 T...

A: Original Yield on the T-Bill is the annualized return earned by an Investor if the bill is hold till...

Q: Consider two lotteries. Lottery A is such that an individual receives a prize of 1.25 units of a con...

A: The expected value is determined by multiplying the probability with its units. This is expected val...

Q: Cascade Mining ($28Mil Assets) has an estimated beta of 1.6. The company is considering the acquisit...

A: As you have asked a question with subparts, we will answer the first three subparts for you. Please ...

Q: SITUATION 3: Vanessa wants to be a 'wise' money saver. She has 20,000 Php and is willing to put it i...

A: Let the amount in 15% bank = X Amount in 10% bank = 20000 - X

Q: May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15 yea...

A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will comp...

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6% p...

A: The following information given in the question: Rate of interest : 6% compounded annually (I)  Init...

Q: What is the equations you use for the questions below to solve in excel?

A: The Gordon growth model: The Gordon Growth model recognizes that the dividends constitute income or ...

Q: QUESTION 26 Consider the following table for Spain and France in which output for grapes and textile...

A: In simple words we can say that absolute advantage means the advantage of produce one goods in place...

Q: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial a...

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value o...

Q: A proposed investment has an initial equipment cost of $250. It will have a life of 4 years. The equ...

A: Initial Investment = $250 Time Period = 4 Years Cash Sales = $230 Per Year Cash Costs = $120 Salvage...

Q: Megan took out a $32,000 student loan with a fixed interest rate to pay for college. Megan did not m...

A: Given: Particulars Amount Loan $32,000 Years 7 Loan balance $59,000

Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25...

A: Given: Particulars   Current age 50 Plans to retire in 10 Expects to live for 25 Retireme...

Q: Explain what the yield curve is, what determines its shape, and how you can use the yield curve to h...

A: The yield curve: The yield curve depicts the yields of bonds with similar credit ratings but with di...

Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment ...

A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides ...

A: An annuity is a type of financial product offered by insurance companies and financial institutions....

Q: Explain the essence of the binomial model for calculating the value of call and put options. Provide...

A: The binomial option pricing model is a method for valuing options that was created in 1979 by y John...

Q: Bausch Company is presented with the following two mutually exclusive projects. The required return ...

A: We will first find out IRR and NPV then we will select the project with the highest NPV.

Q: “The Global Financial System has evolved over time with the development of new financial markets and...

A: Global financial system is defined as the worldwide framework of an institutions, formal as well as ...

Q: Rain company whose tax rate is 40% has a total asset of P500,000,000 and earnings before interest an...

A: Interest Payment is calculated on the debt part out of the total funds of the company. Net Income is...

Q: Differentiate annuity dues and deferred annuities.

A: An annuity can be divided into two types: Annuity due: Unlike a regular annuity, annuity due paymen...

Q: ollowing Options traded on the Chicago Board Options Exchange:  a) AstraZ Nov 340 call            ...

A: Call option gives the right to purchase the stock but no obligation to do so and put option gives ri...

Q: Find the present value of the following ordinary deferred annuity. Periodic Made Payment Period Peri...

A:  A deferred annuity: A series of finite, constant receipts/payments made at fixed intervals is known...

Q: QUESTION 17 1. A principal may not revoke an agency contract if the agent has an interest in the sub...

A: As per the guidelines in case of multiple question we are supposed to do the first question.

Q: Six sites have been identifled for a parking lot in downtown Blacksburg. Because the sites are plots...

A: IRR is a value at which NPV is equal to the zero or PV cash inflows equal to the PV of cash outflows...

Q: Assume the $12,480 Treasury bill, 5% for 15 weeks. Calculate the effective rate of interest. (Use ca...

A: Effective rate of interest  = Amount of interest / [ (Principal - Amount of interest) x Time period ...

Q: A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, ...

A:

Q: Sources and Uses of Cash. create the statemen of cash flows from the entries: Net income          ...

A: Statement of cashflows shows the flow of cash in the business. It consists of operating activities, ...

Q: You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a...

A: Present Value of Ordinary Annuity refers to a concept which determines the value of cash flows at pr...