Weismann Co. issued 9-year bonds a year ago at a coupon rate of 10 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 7 percent, what is the current bond price?
Multiple Choice
$714.05
$1,427.29
$1,181.41
$1,119.12
$1,191.41
In: Finance
You will make 4 deposits of $5,000 per year beginning in year 3. How much will you have in the bank at year 10 at an interest rate of 6%?
Simple interest
In: Economics
Weismann Co. issued 7-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 8 percent, what is the current bond price?
In: Finance
Last year, Buch Gmbh, a German firm, paid a dividend of EUR 3,30 per year. The current stock price of the firm is EUR 194,98. An analyst documents that the current required return on equity for the firm is 9 percent and dividends are expected to grow at 14 percent for the next two years, 12 percent for the following five years, and 6,75 percent thereafter. Evaluate the firm's current stock price!
In: Finance
| 1) | A magazine company sells a 1-year subscription for $23.88 and a 2-year | |||||||||||||||
| subscription for $38.16 on January 1, 2009. | ||||||||||||||||
| Create the journal entry to record both the sale and the associated | ||||||||||||||||
| adjusting entry on January 31, 2009 | (check figure: balance of unearned subscription revenue after all transactions = 58.46) | |||||||||||||||
In: Accounting
A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year . An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest dollar.
Expected Value:
In: Statistics and Probability
Corp. discovered an error made in Year 1 while preparing Year 2 financial statements.
Fifteen months worth of insurance costs, totaling $15,000, were expensed in Year 1.
Company policy requires all insurance payments to be recorded initially as Prepaid Insurance.
A reconciliation of insurance showed the correct amount had been expensed in Year 2. Corp.'s tax rate in both years was 30%.
Year 1 ending retained earnings was reported at $86,000.
Year 2 net income was $45,000 & $10,000 of dividends were declared & paid in Year 2.1
1) Mkae a JE showing total insurance expensed in year 1
2) Make JE showing proper amount of insurance expensed in year 1
3) Make the appropriate journal entry to correct this error
4) Prepare the Statement of Retained Earnings for year 2 year end
In: Accounting
An insurance company charges a 21-year-old male a premium of $500 for a one-year $ 100 comma 000 life insurance policy. A 21-year-old male has a 0.9985 probability of living for a year. a. From the perspective of a 21-year-old male (or his estate), what are the values of the two different outcomes? The value if he lives is nothing dollars. The value if he dies is nothing dollars. b. What is the expected value for a 21-year-old male who buys the insurance? The expected value is nothing dollars. c. What would be the cost of the insurance if the company just breaks even (in the long run with many such policies), instead of making a profit? nothing dollars d. Given that the expected value is negative (so the insurance company can make a profit), why should a 21-year-old male or anyone else purchase life insurance? A person who buys a one-year policy will expect to make a profit. Insuring the financial security of loved ones compensates for the negative expected value.
In: Statistics and Probability
In: Accounting
13. There is a 0.9988 probability that a randomly selected 33-year-old male lives through the year. A life insurance company charges $194 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out$120 comma 000 as a death benefit. Complete parts (a) through(c) below.
a. From the perspective of the 33-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
The value corresponding to surviving the year is $______
The value corresponding to not surviving the year is$______
(Type integers or decimals. Do not round.)
b. If the 33-year-old male purchases the policy, what is his expected value?
The expected value is $______
(Round to the nearest cent as needed.)
c. Can the insurance company expect to make a profit from many such policies? Why?
(Yes,No,) because the insurance company expects to make an average profit of $_____ on every 33- year dash old male it insures for 1 year.
(Round to the nearest cent as needed.)
In: Statistics and Probability