Reference no: EM13848967
1. You are an agent who wishes to sell a $1 million life insurance policy. Your client thinks she can’t afford a policy that large, so to reduce the price you tell her you will give her 50 percent of your commission. Is this legal or ethical?
2. To increase the market share of your business, you throw monthly country-dancing parties, including an open bar, for potential clients. Is this ethical?
3. A couple of years ago you filed a claim for water leakage in your home. Now, during the homeowner’s coverage crisis, your insurer will not renew your policy with the same coverage and the same deductibles. You will have to pay higher premiums, and your deductible is larger. Is it ethical for the insurer to change your coverage so substantially?
4. As the chief financial officer for a large insurance company, you receive a budget request from your ethics officer for $75,000 to be spent on ethics training for your employees. You can think of many other ways to spend this money that would directly increase sales or reduce expenses. With no tangible, bottom-line results, how do you measure whether ethics training is a good investment?
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Graduates earn same returns in future as in the past
: Zora and Nelson, who are recent graduates of the prestigious MBA program at Meredith College, have each received $10,000 as graduation gifts. Zora and Nelson share the same birthday and they are both 30 years old. If the two graduates earn the same r..
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Disadvantages of investing in stocks and bonds
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Value of share is equal to present value of future earnings
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To increase the market share of your business
: You are an agent who wishes to sell a $1 million life insurance policy. Your client thinks she can’t afford a policy that large, so to reduce the price you tell her you will give her 50 percent of your commission. Is this legal or ethical? To increas..
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Paid an annual dividend of per share
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What is the price of the stock today
: A company has just paid a dividend of $0.52. Next year's dividend is expected to be 15% higher, after which the dividend will remain the same indefinitely. Assuming shareholders require a rate of return of 20%, what is the price of the stock today?
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Intends to make its first dividend payment
: Hayden Ltd intends to make its first dividend payment 5 years(s) from now. It then intends to pay dividends annually thereafter. The company has announced it expects the first three dividends to all be of the magnitude of around 5 cents per share.
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The future value of an investment will increase
: Holding all else constant, the future value of an investment will increase if:
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