Under COBRA after Bill is no longer eligible for the plan

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Reference no: EM131984531

1. Please show work

Bill is a full-time employee of Monkey Business Inc. (MBI), which has 200 employees. Bill is married to Beth, his dependent. Bill has just turned age 65, although he lied about his age to Beth who thinks he’s amazing and only 45 years old. Both Bill and Beth are covered under MBI’s health plan but when Bill turned 65, the plan made him take Medicare. How long can Beth be covered under COBRA after Bill is no longer eligible for the plan?

a. 0 months.

b. 18 months.

c. 27 months.

d. 36 months.

2. You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $55.08 per share. You will also receive a dividend of $2.46 per share at the end of the next year. If your required return on this stock is 10.32 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?

Reference no: EM131984531

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