You are an actuary for ABC Insurance Company. You currently have an annuity product that will pay a level $1,000 per year at the end of each year for 20 years. You are considering adding a second annuity that is identical to the first, but it has a cost of living adjustment (COLA) of 4% per year starting in the second year. A COLA is an increase in payments that is used to compensate for the loss in purchasing power of money due to inflation. What is the difference in the cost to your company of the COLA annuity compared to the level annuity assuming an annual effective rate of interest of 5.00%

Which of the following areas provides residents with close access to high-paying jobs and cultural attractions? a. the suburbs b. exurbs c. rural areas d. the city 2b2t

The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?