Albert had a terminal illness which required almost constant nursing care for the remaining two years of his estimated life, according to his doctor. albert had a life insurance policy with a face amount of $100,000. albert had paid $25,000 of premiums on the policy. the insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. albert accepted the $80,000. albert used $15,000 to pay his medical expenses. albert made a miraculous recovery and lived another 20 years. as a result of cashing in the policy:
a. albert must recognize $65,000 ($80,000 – $15,000) of gross income.
b. albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses.
c. albert is not required to recognize any gross income because of his terminal illness.
d. albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income.
e. none of these choices are correct.

Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work

Social computing forces companies to deal with customers as opposed to

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)