Reference no: EM131219568
Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the beneficiary (Morgan) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly.
Compute Present value if:
(a) $56,270 immediate cash. (Round factor values to 5 decimal places and final answer to 0 decimal places,) Present value $
(b) $4,100 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, and final answer to 0 decimal places,) Present value $
(c) $19,000 immediate cash and $1,900 every 3 months for 10 years, payable at the beginning of each 3-month period. (Round factor values to 5 decimal places, and final answer to 0 decimal places,) Present value $
|
Ithout knowing anything about personal ethics of the owners
: Without knowing anything about the personal ethics of the owners, which company would you better trust to keep its word in a business deal?
|
|
Discount rate and determine whether opportunity
: Consider the following opportunities. Opportunity 1 requires a $4,000 cash payment now (Year 0) but will result in $14,000 cash received in Year 5. Opportunity 2 requires no cash outlay and results in $3,500 cash received in Year 3 and Year 5. Use Ap..
|
|
Upper management to review payroll
: You have just been hired as a manager of ABC Company. Your first week on the job you are asked by upper management to review payroll. You notice the company is not paying any taxes for its employee. You ask the payroll director why there are no taxes..
|
|
Is nike versus reebok
: Identify three (3) profitability ratios that creditors may be interested in. Calculate the ratio for each company, and prepare a report to summarize your findings on the financial health of each company. Also, recommend to management the manner in wh..
|
|
Insurance policy contract-compute present value
: Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the beneficiary (Morgan) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value i..
|
|
Auditors are performing review of client financial statement
: Which of the following is not typically performed when the auditors are performing a review of client financial statements? Analytical procedures applied to financial data. Inquiries about significant subsequent events. Confirmation of accounts recei..
|
|
Characteristic of limitedminus-liability company
: Which of the following is a characteristic of a limitedminus−liability company? (LLC)?
|
|
Combination costs-stock issue and registration costs
: On December 31, 2012, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. Pacifica’s entries to account for the considera..
|
|
Do you understand the distinctions
: Do you understand the following distinctions? Briefly explain in each case.
|