A company can borrow funds at an after-tax cost of 4.5%. The company’s stock price is $40 per share, earnings per share is $2.00, and the company has 15 million shares outstanding. If the company borrows just enough to repurchase 2 million shares of stock at the prevailing market price, that company’s earnings per share is most likely to:

Mary is concerned that inflation will reduce the purchasing power of her life insurance proceeds when she dies. To provide protection against this risk, she added a rider to her policy that allows her to purchase one-year term insurance equal to the cumulative change in the consumer price index from the issue date of the policy. This provision is called a:

(a) Cost-of-living rider (b) Guaranteed purchase option (c) Waiver-of-premium provision (d) Change of plan provision

A transaction collapses after the buyer makes an offer and the seller accepts the offer. Which of the following forms would be appropriate to use to ensure that the parties legal duties to each other have terminated?

A. Contract Amendment B. Contract rescission C. Counteroffer D. Contingency