The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay
Question:
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 92% (13 reviews)
Input area Desired am...View the full answer
Answered By
Rohail Amjad
Experienced Finance Guru have a full grip on various sectors, i.e Media, Insurance, Automobile, Rice and other Financial Services.
Have also served in Business Development Department as a Data Anlayst
4.70+
32+ Reviews
83+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,113 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy...
-
The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $ 15,000 per year forever. If the required return on this investment is 5.2 percent, how...
-
An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with $12,000 at the end of each year for the next 25 years. You...
-
Shown below is information from the financial reports of Knauss Supermarkets for the past few years. Instructions a. Calculate the following statistics for Knauss Supermarkets (round your answers to...
-
A U-shaped cross section of constant thickness is shown in the figure. Derive the following formula for the distance e from the center of the semicircle to the shear center S: Also, plot a graph...
-
Complete the assignment of fire insurance expense to eachdepartment. Indirect Basis of Ice Cream a Expense Assignment Candy Sales 150,000 25,000 sq. ft. a. 15,000 sq. ft. Pizza Sales C. 6,000 sq. ft....
-
The magnitude of the osmotic pressure depends on the (a) Temperature (b) Gibbs' free energy (c) Nature of the semi-permeable membrane (d) Entropy.
-
1. Prepare a detailed list of pros and cons of in-house versus software purchase. 2. Calculate ROI for both options. 3. Calculate NPV for both options. Use an 8% discount factor. 4. Create a...
-
CARF Can be found at: https://www.carrollcountymd.gov/government/directory/comptroller/prior-years-annual-comprehensive-financial-reports/2020-comprehensive-annual-financial-report/ Proprietary Funds...
-
You are the Owners project manager on an electrical upgrade project. Existing overhead power lines are being buried in a duct bank to hide them from view in an area of the town that is being...
-
Dinero Bank offers you a $60,000, five-year term loan at 7.5 percent annual interest. What will your annual loan payment be?
-
Find the EAR in each of the followingcases: Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 9% 18 14 Quarterly Monthly Daily Infinite
-
What are three ways the government could bring about a change in the money supply?
-
What does it mean that the plaintiff must have actively participated in instigating the prosecution in malicious prosecution?
-
True Or False Offering a better price to a third person, knowing that this could induce this person to breach their contract with the plaintiff, does not constitute interference with contractual...
-
For a misrepresentation, a defendant a. is not liable for negligent misrepresentation if they do not receive compensation directly from the plaintiff. b. is liable to those whom they intend to reach...
-
True Or False Innocent misrepresentation is a viable cause of action in product liability cases even when the plaintiff does not buy the product directly from the defendant.
-
A defendant sued for strict liability can raise the defense of a. assumption of risk. b. proximate cause. c. contributory negligence. d. all of the above.
-
Why might a bidding business be prepared to pay a premium above the market price for the shares of a business? Try to think of at least two reasons.
-
The 2017 financial statements of the U.S. government are available at: https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm Use these to answer the following questions: a. Statement...
-
The stockholder will receive whatever is left after bondholders are paid. An investor is thinking of investing $40,000 in the company for 1 year. A year later, she will pull out of the investment....
-
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,410,000, and the December 31, 2016, balance sheet showed long-term debt of $1,551,000. The 2016 income statement...
-
The December 31, 2015, balance sheet of Schism, Inc., showed $130,000 in the common stock account and $2,332,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed...
-
Given the information for Schism, Inc., in Problems 10 and 11, suppose you also know that the firm's net capital spending for 2016 was $705,000, and that the firm reduced its net working capital...
-
Ridge Crest Company has beginning Retained Earnings of $23,000, ending Retained Earnings of $32,600, and net income of $15,500. What was the amount of dividends declared during the year?
-
Solomon Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost $ 8.50 per unit Fixed selling and administrative...
-
Shadee Corporation expects to sell 640 sun shades in May and 380 in June. Each shade sells for $134. Shadee's beginning and ending finished goods inventories for May are 70 and 40 shades,...
Study smarter with the SolutionInn App