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

  Open-end mutual fund and a closed-end fund

What is the difference between an open-end mutual fund and a closed-end fund? What is the difference between an open-end mutual fund and a unit investment trust? (17-3)

  Suppose call on stock with strike price-piece-wise function

Suppose a call on a stock with strike price X +1 cost $1 and a put on a stock with strike price X −1 and the same expiration date costs $1. Suppose the price of the stock on expiration date is given by ST. Find the payoff to the investor that holds b..

  State of alabama has legally earmarked

The state of Alabama has legally earmarked around 85 percent of its state budget.

  Perform multiple regression with real financial data

Perform multiple regression with real financial data - estimate the Fama - French 3-factor model for a list of twenty stocks and interpret the regression output.

  What is profit or loss if the price of the stock trades

You obtain the following information concerning a stock, a call option, and a put option. What is the cash inflow or outflow from your position? What is profit or loss if the price of the stock stagnates and trades for $42 after three months? What is..

  What is the receivables turnover and annual credit sales

Evil Pop, Inc., has an average collection period of 50 days. Its average daily investment in receivables is $44,300. Assume 365 days per year. What is the receivables turnover? What are annual credit sales?

  A company has two bonds outstanding

A company has two bonds outstanding. The first matures after five years and it has a coupon rate of 3%. The second matures after ten years and it has a coupon rate of 5%. Interest rates are currently 7%. What is the present value of each $1,000 bond?..

  What are implications for cash flow and shareholder wealth

Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage earnings targets.

  A stock price is currently trading

A stock price is currently trading at $50. Over each of the next two 3-month periods it is expected to go up by 6% or down by 5%. The risk-free interest rate is 5% per annum with continuous compounding. Please Show Your Work. What is the value of a 6..

  What determines the intrinsic value of financial security

What determines the intrinsic value of a financial security (ie. a stock, bond, etc)? - How is the intrinsic value arrived at? (ie. What kind of assumptions are required?) - How do we explain why analysts can come up with different valuations for the..

  Value of ending inventory using variable costing

Watkins Inc Income Statement For the Year ended December 31, 2010 Sales (@ $50) 250,000 COGS 120,000 Gross Margin 130,000 Less selling & admin Variable selling 75,000 Fixed selling 10,000 Fixed admin exp 15,000 100,000 Net Income $30,000 Watkins manu..

  What is the required return on the companys stock

Keenan Co. is expected to maintain a constant 4.2 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.0 percent, what is the required return on the company’s stock?

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