Issued the annuity has no more obligations

Assignment Help Financial Management
Reference no: EM13980671

TRUE OR FALSE? Without a financial plan it is difficult to choose the investments that will provide sufficient value at the correct time.

TRUE OR FALSE? Immediate annuity contracts will only pay the annuitant. There are no exceptions. This means that upon the annuitant’s death the contract is terminated and the insurance company that issued the annuity has no more obligations.

Reference no: EM13980671

Questions Cloud

What is the remaining principle after each installment : A person borrows $15,000 and has to pay the sum back in 5 annual installments starting one year from the day at which the loan is made. The interest rates are compounded annually and are variable. The first two years, the interest rate is 10% per ann..
What is the effect interest rate : If you borrow $2,500 from a bank now, at nominal interest rate of i (annual percentage rate, APR) compounded quarterly, and if you pay to the bank a year from now $2,700 what is the value of i? What is the effect interest rate (annual percentage yiel..
It makes sense to always sell your risky assets when market : A variable annuity contract can be defined as a contract in which the insurance company varies the annuity payments based on the net income of the insurance company. If the net income of the insurance company increases, then the annuity payments asso..
The annuitant can never outline the annuity payments : One feature that all annuity contracts have in common is that the annuitant can never outline the annuity payments. Risky investments always perform better than less risky investments over a five-year period. Generally, investments that have the pote..
Issued the annuity has no more obligations : Without a financial plan it is difficult to choose the investments that will provide sufficient value at the correct time. Immediate annuity contracts will only pay the annuitant. There are no exceptions. This means that upon the annuitant’s death th..
About the forecasting : Why does an HCO plan the sizes of its various components? What are the implications of too big and too small? Why is the final decision reserved for the governing board? How are the Epidemiologic Planning Model and the Precede-Proceed Model similar? ..
What should be the current stock price of hope : Hope Industries just paid a dividend of $2.00 per share (i.e., D0 = $2.00). Analysts expect the company's dividend to grow at 30 percent this year and at 20 percent in year 2. What should be the current stock price of Hope?
Health goals instead of developing a community coalition : Your HCO, like many, assists some community groups with specific health goals rather than support a community coalition with broad goals. What arguments would you prepare to address the governing board in support of developing a community coalition? ..
What will be your incentive contract plan : Supposed that you represent the shareholder board of Apple Inc. and decide to elicit high CEO effort to help the company: What will be your incentive contract plan (e.g. bonus, stock option…etc.)?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the amount of the monthly payments

A commercial bank will loan you $49,514 for 5 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 17.41 percent of the unpaid balance. What is the amount of the monthl..

  Analyse the value of caraways equity

Analyse the value of Caraway's equity if it pays out a $200,000 cash dividend today and plans to pay a $1.2 million liquidating dividend at the end of one year.

  Constant growth

You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50) has a beta of 0.9. The risk-free rate is 4.6%, and the market risk premium is 5.0%. Keller currently se..

  Return on equity affected by use of financial leverage

Is the return on equity (ROE) affected by the use of financial leverage? Why does this result occur? Should Router choose the capital structure that maximizes its expected ROE? Explain.

  What line items reflected the largest-percentage increases

What line items reflected the largest-percentage increases

  Using the percent of sales method-projected current assets

The chief financial officer of AJAX Industries expects sales to increase from $8,000,000 in 2010 to $12,000,000 in 2011. Current assets in 2010 are equal to $5,000,000. Using the percent of sales method, projected current assets for 2011. Please show..

  About the cash conversion cycle

Primrose Corp has $19 million of sales, $2 million of inventories, $4 million of receivables, and $2 million of payables. Its cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 6% rate. What is Primrose's cash c..

  About the calculate the net present value

The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $260,000. Of this amount, $210,000 is subject to five-year MACRS depreciation. Calculate the net..

  Treasury bond with the longest maturity

Treasury bond with the longest maturity (30 years) has an ask price quoted at 97:19. The coupon rate is 3.00 percent, paid semi annually. What is the yield to maturity of this bond?

  How much interest is included in her gross income

Loris purchased educational saving bonds to help finance her son’s education.  She paid $4000 for the bonds.  The bonds matured at $6000 and the son used $2500 to pay his tuition for the first semester.  The son quit school after one semester and Lor..

  Determine the value of the bond

(Bond valuation) Fingen’s 15-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,050 and the markets required yield to maturity on a comparable-risk bond is 12 percent. Compute the bonds expected rate of..

  The discounted free cash flow model

The Discounted Free Cash Flow Model for Total Equity Initial capital investment = $5,000,000 and NWC Investment = $500,000 Barking Dog Corporation Years Ending December 31 First Year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd