Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Morgan is a 32-year-old nurse. She is in good health and has applied for a new cash value life insurance policy. She is interested in knowing whether she should surrender her current policy and purchase the new policy offered through a AAA-rated firm. If all of the contract and company characteristics are similar, and the current face value of her policy is sufficient, should she maintain or replace her current policy? Assume the following factors:

- Yearly premium: $1,900

- Cash value at the beginning of the period: $13,456

- Cash value at the end of the period: $13,927

- Projected after-tax rate of return: 3.50%

- Current policy dividend: $350

- Death benefit: $200,000

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M938142

Have any Question? 


Related Questions in Basic Finance

Which financial variable must be multiplied by the return

Which financial variable must be multiplied by the return on assets ratio in order to calculate the return on stockholders' equity ratio? Which financial ratio assesses management performance by measuring the profitabili ...

Consider a study in which the heights of a sample of 1000

"Consider a study in which the heights of a sample of 1000 ball players were recorded. The mean height is 70" and the standard deviation of the height is 3". The height distribution is approximately normal. a) Approximat ...

Explain the difference between a forward contract and an

Explain the difference between a forward contract and an option? What factors distinguish a forward contract from a futures contract? What do forward and futures contracts have in common? What advantages does each have o ...

A column in the wall street journal observes that while

A column in the Wall Street Journal observes that "while many people buy stocks in the hope of scoring profits down the road, dividends deliver cash right now." If stockholders desire dividends, why do some firms, such a ...

1 why must researchers use reliable measures2 why is it

1. Why must researchers use reliable measures? 2. Why is it virtually impossible to eliminate all measurement error from the measures we use in research? 3. What is the relationship between the reliability of a measure a ...

1 what is meant by availability in logistics customer

1. What is meant by availability in logistics customer service? Provide examples of the different ways to monitor a firm performance in availability. 2. Compare and contrast speed, consistency, and flexibility as operati ...

All of us have a tendency to categorize people into

All of us have a tendency to categorize people into stereotypic groups. If you look around at the students on campus, you will see science geeks, artsy freaks, jocks, wallflowers, cheerleaders, and party animals, just to ...

The cost of capital weighted average cost of capitalthe

The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportio ...

Wall street or great wallthe challenge to maintain

WALL STREET OR GREAT WALL? THE CHALLENGE TO MAINTAIN DOMINANCE IN THE GLOBAL FINANCIAL MARKETS On September 29, 2008, the American equities markets lost an estimated $1. 2 trillion in market capitalization. This astonish ...

Faro technologies whose products whose products include

FARO Technologies, whose products, whose products include portable 3D measurement equipment, recently had 17 million shares outstanding trading at $42 a share. Suppose the company announces its intention to raise $200 mi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen