Recruit an agency force if everybody took your advice

Assignment Help Financial Management
Reference no: EM13848297

After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a life insurance company general agent became upset and said rather vehemently, “How do you think we could recruit an agency force if everybody took your advice?” How would you answer that question?

Reference no: EM13848297

Questions Cloud

Capitates environment versus a fee-for-service environment : What are the critical differences in profit analysis when conducted in a capitates environment versus a fee-for-service environment?
Consider european call option on non dividend-paying stock : Consider a European call option on a non dividend-paying stock. This option is priced using a two-period binomial tree.
Considering buying security that makes annual payments : You are considering buying a security that makes annual payments (to you) that grow by 1% per year forever, with the first payment made one year from today and in the amount of $2. Your required return is 6% per year for this security. How much shoul..
What is the marginal value of an additional unit of labor : Consider a resource-based economy which can allocate labor (L) to harvest timber (T) or fish (F). Assume the economy faces constant world prices for timber and fish, denoted Pt and Pf, respectively. How should labor be allocated to timber and fish pr..
Recruit an agency force if everybody took your advice : After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a life insurance company general agent became upset and said rather vehemently, “How do you think we could recruit ..
Fully-amortizing-fixed-rate mortgage : You are 12 years into your fully-amortizing, 30-year, fixed-rate mortgage for $90,000. The loan has a 7-year reset provision. The initial interest rate on the loan is 6%. The reset rate is 8%. The loan required you to pay 3 discount points at origina..
Investors expect the annual future stock market return : Brodkey Shoes has a beta of 1.10, the T-bond rate is 5.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 14.00%. Based on the SML, what is the firm's require..
What is the effective borrowing cost for loan : A lender is offering a 30-year, fixed-rate, fully-amortizing mortgage loan at 8.25% interest with 2.75 discount points. What is the effective borrowing cost for this loan if the borrower prepays the loan at the end of year 5?
Required rate of return implied by current market price : The AZ Company currently has $1,000,000 in physical assets that have always generated a steady stream of earnings for the company. The management of the firm has always paid all of its earnings to shareholders as a dividend. What is the required rate..

Reviews

Write a Review

Financial Management Questions & Answers

  Contribution to its endowment fund

A college received a contribution to its endowment fund of $2 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?

  Constant growth valuation-stock price is expected

Harrison Clothiers' stock currently sells for $20 a share. It just paid a dividend of $2 a share (that is, D0 = 2). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now?

  Calculate after-tax cash flow at disposal

Reversing Rapids Co. purchases an asset for $152,582. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has..

  What is the yield to maturity of a bond that sells

What is the yield to maturity of a bond that sells for $1,045 today and pays $30 every six months and matures in 12 years if bonds issued today are paying $40.00 annually?

  Capital market instruments include

Capital market instruments include:

  What is the practical limit based on liquidity

Planetary travel co has $240,000,000 in stock holder’s equity. Eighty million dollars is listed as common stock and the balance is in retained earnings. The firm has $500,000,000 in total assets and 2 percent of this value is in cash. Earnings for th..

  Define classes of shares with unequal rights

When comparing common stock of the same company it is fair to say that all shares, no matter how many classes, are all created with the same equal rights. companies sometimes have two different classes of shares with unequal rights to dividends an..

  Amount to use as annual sales figure when evaluating project

Winnebagel Corp. currently sells 35,000 motor homes per year at $73,000 each, and 14,500 luxury motor coaches per year at $110,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 30,000 of the..

  What is the realized compound yield from the bond

You have just bought a 5 year 10% annual coupon bond with a par value of $1000 at a price of $963.04. Immediately after you bought the bond, the market interest rate changed to 8% per year. If the interest rate does not change from this level for the..

  Explain the organisation of the advertising

Explain the communication process that applies to advertising and promotion and explain the organisation of the advertising and promotions industry

  Utility is valued using a discount rate

Star Light & Power increases its dividend 2.9 percent per year every year. This utility is valued using a discount rate of 9 percent, and the stock currently sells for $52 per share. If you buy a share of stock today and hold on to it for at least th..

  Actual cash value

What amount would a person with actual cash value (ACV) coverage receive for two-year-old furniture destroyed by a fire? The furniture would cost $1,000 to replace today and had an estimated life of five years.

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