The basic difference between whole life insurance and universal life insurance is that:
A) The universal life investment portion pays interest at a variable rate and whole life does
not.
B) Universal life is a single premium payment plan and whole life is not.
C) Universal life includes health insurance and whole life does not.
D) There is no difference because they are two terms for the same type of policy.
E) Universal life is usually purchased by corporations on its employees and whole life is
usually purchased by individuals for family members.
A
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Which amendment to the U.S. Constitution made it illegal to restrict the freedom of religion, speech, and press, as well as protect the right of people to peacefully assemble?
A) Article 1, Section 8 B) First Amendment C) Fifth Amendment D) Fourteenth Amendment, Section 1
Distant Thunder, Inc paid a dividend of $5.00 per share on its common stock yesterday. Dividends
are expected to grow at a constant rate of 10% for the next two years, at which point the dividends will begin to grow at a constant rate indefinitely. If the stock is selling for $50 today and the required return is 15%, what it the expected annual dividend growth rate after year two? A) 5.000% B) 3.878% C) 4.556% D) 3.365%