Given a cash value policy with the following characteristics: face value = $200,000, cash value = $50,000, outstanding loans = $10,000 and surrender charges = $1,000, the benefits payable at death are A) $200,000. B) $199,000. C) $190,000. D) $150,000. ANSWER C
Date: September 19th, 2020
Blanton Consulting Inc just paid a $2.00 per share dividend. The firm also announced that it anticipates a long-run growth in dividends of 3% per year. Inflation is also expected to be 3% per year, and the firms required rate of return on common stock is 11%. What is the current price per share of […]
Date: September 19th, 2020
Benefits under a joint life annuity with survivorship A) will continue as long as either partner to the marriage is still alive. B) will continue as long as both partners to the marriage are alive, and will totally cease at the death of the first. C) usually have a greater expected value than those offered […]
Date: September 19th, 2020
Information collected and published by finance professor Aswath Damodaran consistently demonstrates that, within industries, the price to book value ratio is GREATER than the EV to EBITDA ratio. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Since most lenders will provide total interest paid but not interest rates, you should know how to calculate them. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Zero coupon bonds pay no intermediate cash flows prior to maturity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
You may be entitled to receive the funds in your retirement plan under which of the following conditions? I. retirement. II. disability. III. termination of employment. IV. financial hardship. A) only I B) only I and II C) only I, II, and IV D) I, II, III, or IV ANSWER D
Date: September 19th, 2020
A collateral loan contains both a promissory note and a security agreement. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Zero coupon bonds sell at a steep premium to the face value. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
EBITDA represents a simple proxy for cash flows from financing. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
