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 58 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
Thanks for the timely response, appreciate it


pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

For a complete list of videos, visit our video library