Denise, age 52, has a straight whole life policy and decides to stop paying premiums and take a paid-up policy for a reduced amount. Her paid-up policy will be
A) term insurance
B) whole life
C) any type of policy she selects
D) an annuity"
Ans: B) whole life
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The manufacturer of a brand of kitchen knives is investigating the likely effects that an increase in the cost of the raw materials required to make these knives will have on the cost of manufacturing the knives,
the selling price of the knives, the number of knives that will then be sold, and the project's net present value (NPV). Which of the following best describes what type of analysis the manager is performing? A) scenario analysis B) sensitivity analysis C) break-even analysis D) EBIT-break even analysis
Based on the information contained in Table 3, what was the total amount of Snark Enterprise's common stock dividend for 2012?
Table 3 Snark Enterprises, Inc. Balance Sheets 2011 2012 Cash $1,000 $? Accounts receivable 8,000 9,000 Inventories 4,000 7,000 Land 10,000 10,000 Other fixed assets 5,000 5,500 Accumulated depreciation (1,600) (2,000) Total assets $26,400 $? Accounts payable $4,200 $ 7,000 Bonds 4,000 4,000 Common stock 15,000 16,000 Retained earnings 3,200 3,800 Total debt and equity $26,400 $? Snark Enterprises, Inc. Income Statement Sales $44,900 Cost of goods sold (22,000) Gross profit $12,900 Operating expenses (10,000) Depreciation (400) EBIT $2,500 Interest expense (500) EBT $2,000 Taxes (1,000) Net Income $1,000 A) $0 B) $400 C) $600 D) Cannot be determined with available information