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Author Question: Benefits under a joint life annuity with survivorship A) will continue as long as either ... (Read 64 times)

jeatrice

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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 the same employee under the single life annuity option.
  D)
 
  have a smaller expected value than those offered the same employee under the single life annuity option.

Question 2

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 the firm's stock?
  A) 14.71
  B) 14.29
  C) 25.75
  D) 25.00



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Briannahope

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Answer to Question 1

A

Answer to Question 2

C
Explanation: C) PV = (Div one)/(r-g) = 2(1.03 )/(.11-.03 ) = 25.75.




jeatrice

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)


amcvicar

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Reply 3 on: Yesterday
:D TYSM

 

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