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What are the answers to these practice problems on my study guide? 11. Bob's Life Insurance Co. is trying to sell you an investment policy

What are the answers to these practice problems on my study guide? image text in transcribed
11. Bob's Life Insurance Co. is trying to sell you an investment policy for $8,500. If you buy the policy, you will receive $30 per week forever. What is the EAR on this investment? 0.35% 14.11% 15.06% 16.73% 20.10% a. b. C. d. e. 12. Calculate the Economic Value Added for the following firm: EBIT = $46,424.24; Interest Expense = $15,424.24; WACC = 13.51%; tax rate = 34%; cost of equity financing = 13.67%; cost of debt financing = 10.77%; LT debt = $153,857; Total equity = $200,000; Accounts Payable and Accruals = $46,143; Total Assets = $400,000. $20,460 $19,084 -$27,346 -$17,166 -$24,300 %3D %3D %3D a. b. d. e

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