Pure term insurance A) cannot be renewed. B) provides only for individual coverage. C) has both a savings component and a death protection component. D) provides only death protection. ANSWER D
Date: September 19th, 2020
EBITDA is an acronym for: A) earnings before interest, taxes, depreciation, and annuitization. B) earnings before interest, taxes, depreciation, and amortization. C) earnings before income taxes, depreciation, and amortization. D) earnings before income taxes, depreciation, and annuitization. ANSWER B
Date: September 19th, 2020
What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of Cash 1/1/14 $14,000 1/1/15 $20,000 1/1/16 $30,000 1/1/17 $43,000 1/1/18 $57,000 Use a 7% discount rate, and round your answer to the nearest $10. A) $112,350 B) $128,490 C) $107,330 D) $153,270 ANSWER B
Date: September 19th, 2020
A gift card may expire after a period of nonuse. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Visa and MasterCard are bank cards. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%? A) $885 B) $900 C) $864 D) $735 ANSWER C
Date: September 19th, 2020
The rules governing cliff vesting require that 100% of employer contributions be vested after A) 1 to 2 years of service. B) 3 to 5 years of service. C) 10 to 11 years of service. D) 13 to 15 years of service. ANSWER B
Date: September 19th, 2020
Decker Corp. common stock has a required return of 17.5% and a beta of 1.75. If the expected risk free return is 3%, what is the expected return for the market based on the CAPM? A) 11.29% B) 15.27% C) 13.35% D) 14.29% ANSWER A
Date: September 19th, 2020
Which of the following policies has little or no cash value buildup? A) Universal life B) Variable life C) Term life D) Adjustable life ANSWER C
Date: September 19th, 2020
What are the two components of the investor’s required rate of return? What will be an ideal response? ANSWER The risk-free rate of return is the required rate of return, or discount rate, for riskless investments. Typically, our measure for the risk-free rate of return is the U.S. Treasury bill rate. The risk […]
Date: September 19th, 2020
