This topic contains a solution. Click here to go to the answer

Author Question: Benefits under a joint life annuity with survivorship A) will continue as long as either ... (Read 57 times)

jeatrice

  • Hero Member
  • *****
  • Posts: 543
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Briannahope

  • Sr. Member
  • ****
  • Posts: 364
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

  • Member
  • Posts: 543
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review


aruss1303

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

For a complete list of videos, visit our video library