Life insurance premiums paid by the company on its officers and employees are considered permanent differences only when the company is the beneficiary. True or false?
Q: Imagine that you are trying to evaluate the economics of purchasing a condominium to live in during ...
A: Here, Property taxes and maintenance expenditure = $6,000 per year, Annual savings = $10,000 per ...
Q: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the b...
A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in p...
Q: If the discounted amount is P8200 while the discount rate is 22% then wha amount of the money? O 114...
A: Loans are given at the discount to the future value of money and this discount on money represents t...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...
Q: a. What is the profitability index for the cash flows if the relevant discount rate is 12 percent? (...
A: Profitability Index: It represents the attractiveness of a particular investment or project. It is ...
Q: A condominium unit can be bought at a down payment of P150,000and a monthly payment of P10,000 for ...
A: Down payment (D) = P 150000 Monthly payment (M) = P 10000 n = 10 years = 120 payments r = 12% per a...
Q: A family wishes to buy a $235,900 home. - If a conventional lender is willing to loan the family 87...
A: Federal housing administration loan helps people with a moderate income to get a mortgage loan for a...
Q: A company has an ROE of 12% and payouts 44% of its earnings as dividends. It is planning to pay a $...
A: Dividend is the part or share of profits that is being distributed to shareholders of the company. D...
Q: Discuss three key characteristics of active fund management and three of passive fund management, fo...
A: Fund management refers to management of funds in such a manner that the funds provide the highest po...
Q: Commercial banks are often restricted by Central banks to hold sufficient capital. Why is such a res...
A: A commercial bank may be a financial institution that accepts deposits, provides bank account servic...
Q: Basic Opfion Strafegies Profif Computation Assume the below prices for calls and puts: Call Put Stri...
A: Call option A call option gives its holder the right to purchase the stock at the strike price. With...
Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated...
A: Given, FV of investment is $1000 Time is 3 years rate is 4% depreciating each year
Q: A market research firm with current sales of $750 does not expect any growth in sales for the next t...
A: Here, Current sales = $750 Current expenses = $160 Expenses for next year = $240 Expenses for second...
Q: Consider a 9-year, $1,000 par value, 12% annual-pay bond that is currently trading at a flat price o...
A: Time to maturity of bond is 9 years Par Value is $1,000 Coupon rate is 12% Annual pay Current tradin...
Q: If the interest rate is 12% per year compounded annually, a) what is the equivalent present worth of...
A: The present worth analysis is an analysis which takes into account the present worth of the benefits...
Q: Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon h...
A: Bond is a debt-backed security which is used by investors to reduce risk and increase stable income ...
Q: Consider a newly issued 4-year, 3.11% annual-pay bond trading at par. The present values of each of ...
A: Macaulay duration It is the weighted average time required before the cash flows of the bond is rece...
Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price ...
A: Par value = $1000 Coupon rate = 6% Coupon amount = 1000*0.06 = $60 Years to maturity = 24 Years Pric...
Q: 1. Discuss: Firms often involve themselves in projects that do not result directly in profits. For e...
A: Direct profit is defined as the amount of money earned from sales after deducting direct costs. This...
Q: How can we reduce this risk in financial reporting process? "Are redundant and out-of-date informat...
A: Financial reporting is a typical accounting approach that uses financial statements to convey a comp...
Q: present value is the
A: https://docs.google.com/document/d/19Usy902_lK6tWQ3RgtQiUedGybbYnqlidq6sySnT8YI/edit
Q: he zero-growth model of stock valuation; a. implies a zero growth in stock price over time b. impl...
A: Zero growth model of stock valuation assume that the firm will pay the same dividend forever. There ...
Q: f Average assets and capital are 900,000 and 540,000, respectively, with an ROE of 0.046, how much i...
A: Average Assets are 900,000 Capital is 540,000 ROE is 0.046
Q: Which of the following is a reason a borrower may want to refinance? O A. The borrower's house value...
A: Credit Score of the borrower is the score which defines credit paying quality of the individual. It ...
Q: Consider the decision of whether to hold wealth as money or as an interest-earning asset that pays a...
A: The nominal interest rate is the rate that we get before any adjustments are made. The real rate is ...
Q: In order to overcome the differences in the preferences of surplus units and deficit usnits, it may ...
A: The large institution takes funds from the small investors and they prepare large amount of funds an...
Q: Find the present value PV of the annuity account necessary to fund the withdrawal given
A: Present Value of Annuity: It represents the present worth of the future annuity periodic payments m...
Q: Howell Petroleum, Ic., is trying to evaluate a generation project with the following cash flows: Yea...
A: NPV can be calculated by following function in excel =NPV(rate,value1,[value2],…) + Initial investme...
Q: Determine the amount of P 45000 after 9 years if the rate is 7% compounded continuously. O 86412 O 8...
A: Amount after 9 years can be calculated with the help of future value function with continuous compou...
Q: An employee is earning P12,000 a month and he can only afford to purchase a car which will require a...
A: Down payment (D) = P 10000 Monthly payment (M) = 30% of P 12000 = P 3600 r = 18% per annum = 1.5% pe...
Q: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...
Q: Which of the following is NOT typically a benefit of taking a 15 year mortgage instead of a 30 year ...
A: 15 year mortgage enables a person to payoff the loan earlier as compared to 30 year mortgage. 15 yea...
Q: Pls Briefly explain these four. 1. The process of assessing overall risks can be difficult and bal...
A: The process of identifying, analyzing, and accepting or mitigating uncertainty in investment decisio...
Q: Light Motors is taking a look at a new product line that will take a few years to create. New lab eq...
A: Initial Cost Php 1,00,00,000.00 MARR 12% Expense for 4 Years Php 1,50,00,000.00 Time Period 2...
Q: Robert Gillman, an equity research analyst at Gman Advisers, beleves in efficent markets. He has bee...
A: Dividend is depended on the earnings. As the earnings will grow, it will simultaneously affect the g...
Q: THIS IS A MANDATORY SUBMISSION An ordinary annuity has payments of $1000 made semi-annually with a n...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance...
A: The present worth analysis is an analysis where all the present values are calculated. All the disco...
Q: capital investment:
A: Capital investment refers to acquiring physical assets for the further use of achieving long-term bu...
Q: LO 1 8.3 Payback Period Concerning payback: Describe how the payback period is calculated and descri...
A: Cash flow statement is referred as the summarized cash and cash equivalents amount that enters as we...
Q: Explain what a corporate bond is b. Outline the characteristics of the bond market d. Explain the be...
A: A company can raise capital and secure financing through different mediums of debt and equity. Corpo...
Q: Question 3 What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond w...
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...
Q: A project that will provde annual cash flows of $2,450 for nine years costs $10,100 today. a. At a r...
A: a) Initial Investment=$10100 Annual Cash Flow=$2450 Required Rate of return= 9% NPV of the Project=...
Q: Analyse Time Interest Earned ratio in 2019 is 4.89 and 2020 is 9.9
A: Solution:- We know, Times Interest Earned ratio means that how many times a firm earns its EBDIT to ...
Q: Hadji wants to find the equivalent annual cash flow for 9 years with interest rate of 15% compounded...
A: Year 1 payment (P1) = $2800 Every payment after this increases by $120 n = 9 years r = 15% Let A = A...
Q: If there is no asymmetric information problem from the perspective of lenders and borrowers, is the ...
A: Financial market is the place where investors invest their funds in various securities and companies...
Q: Southern Timber Company expects to have an EBIT of $10 million in the coming year, and its EBIT is e...
A: According to M&M Model the value of levered firm will be sum of value of unlevered firm plus tax...
Q: A few years ago, Big Rock invested in a number of bonds with various maturity dates. Several of thes...
A: The evaluation of bond yield can be calculated in various ways. Each type of bond yield is specific ...
Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return...
A: The weighted average cost of capital expresses the return that both bondholders and shareholders dem...
Q: 1. What payment 12 years from now is equivalent to a payment of 7,000 9 years from now, if money is ...
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first...
Q: Suppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra ...
A: The quarterly amount will be found using excel’s pmt function. It is the minimum amount that must be...
Life insurance premiums paid by the company on its officers and employees are considered permanent differences only when the company is the beneficiary.
True or false?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Life insurance premiums paid by the company on its officers and employees are considered permanent differences only when the company is the beneficiary. a. TRUE b. FALSEWhat does the insurer agree to pay for in addition to covering losses in an insurance policy? Services such as investigating claims and defending the insured The entire policy limit Premium costs for the policy period Only losses below the deductiblePayments by employers of premiums on life insurance for employees are not taxable benefits. Select one: O True O False
- Which is not an essential characteristic of an insurance contract? A. transfer of significant risk from the issuer to the policyholder B. policyholder pays the issuer for the transfer of risk C. issuer indemnifies the policyholder for losses when the insured event occurs D. none of the above1. Which of these is NOT a regulation set forth within ERISA? Answer: A. Employees must be provided with pertinent retirement plan information. B. Employers are required to offer retirement plans. C. Fiduciaries of the retirement plan may be held accountable for breaches of responsibility. D. There are specific timeframes over which retirement plan benefits become nonforfeitable. 2. Which statement is incorrect regarding wage garnishments? Answer: A. They are only ordered by a court or other legal proceeding. B. The amount of the garnishment is based on disposable earnings. C. The limit can be increased for child support. D. If multiple garnishments are in effect, they are satisfied in the order in which they were received. 3. Which statement about Social Security tax is accurate? Answer: A.…Which of the following types of insurance does NOT involve a contract with an external party? a. self insurance b. directors and officers insurance c. property insurance d. life insurance
- Statement 1: If an insured outlived his policy and received from the insurance company an amount equivalent to the total premiums paid, such amount is taxable. Statement 2: If the insured dies and the beneficiary receives payment from the insurance company, the amount received in excess of the total premiums paid shall be taxable. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is trueWhat are the main parts of an insurance contract and what are they designed to accomplish? How are insurance contracts interpreted by the courts and regulatory bodies? In a dispute over coverage who has the burden of proof? What is subrogation as it relates to insurance? Consider a situation where a professional misrepresents information when acquiring an insurance policy and a third party is injured. What might happen if a claim is made against the insurance company that issued the policy based on fraudulent information? Will the insurance company be liable? Support your position with a specific case.Were you correct that the pension liability is not reported in the balance sheet? What is the liability?
- TRUE OR FALSE 1. PFRS 17 allows and insurer to charge its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. 2. Outward reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. 3. Premium deficiency arises when the unearned premium reserve is less than the estimated claimed related expenses.Which of the following is NOT true about a temporary insurance agreement? Select one: a. It can only cover life insurance and living benefits b. It expires the date the policy becomes effective c. The applicant will submit the premium with the application d. It can be provided if the agent believes the policy will be issuedWhen should a company report the cost of an insurancepolicy as an expense?a. When the company first signs the policy.b. When the company pays for the policy.c. When the company receives the benefits from thepolicy over its period of coverage.d. When the company receives payments from the insurance company for its insurance claims.