Whole life insurance policy issued

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1. The net single premium for a $10,000 whole life insurance policy issued to (40) is $4,000. At the end of 10 years, the benefit reserve on a $50,000 whole life insurance policy issued to (30) is $7,000. The net single premium for a $10,000 whole life insurance policy issued to (30) is P. All contracts are fully discrete. Determine P.

2. Look up 3 stocks that are in the same industry using Yahoo! Finance or Google Finance. Rank their P/E ratios from highest to lowest (be sure to label it!). Suppose a new competitor appears whose earnings are $0.50 per share. Using the ratios method we learned in class, what should its stock price be? ( show the work).

Reference no: EM131962306

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