The answer to the first question is C. screen;deductible;premium. <span>By offering a menu of policies with different premiums and deductibles, insurance companies can <span><em>screen</em></span> their customers; for example, a low-risk customer </span><span>will often buy insurance with a lower <em>deductible</em> but a higher <em>premium</em> than a high-risk customer.
The answer to the second question is C $2, 161.98. </span>
Answer:
Campus Stop, Inc.
Partial Income Statement
Sales revenue $323,300
Sales returns ($1,730)
Sales discounts and allowances <u> ($2,270)</u>
Net sales $319,300
Cost of goods sold <u>($172,870)</u>
Gross profit $146,430
Gross profit margin = $146,430 / $319,300 = 45.86%
Answer:
"Central database" and "Share"
Explanation:
Enterprise systems have a set of integrated software modules and a central database by which business processes and functional areas throughout the company can share data.
Answer and Explanation:
The computation is shown below:
a. The book value or net worth per share is
= (Assets - current liabilities - long term liabilities - outstanding preferred stock) ÷ (common stock shares)
= ($418,000 - $126,000 - $131,0000 - $38,700) ÷ (20,000 shares)
= $6.12 per share
b. Now the current price is
= Earnings available ÷ common stock shares × P/E
= $32,300 ÷ 20,000 shares × 21
= $33.92
c. The market value to book value is
= Market value ÷ book value
= $33.92 ÷ 6.12
= 5.54
Answer:
Present Value of savings = $33,7842.35
Explanation:
An annuity: A series of equal amount receivable or payable in the future for certain number of years is called an annuity. There are two (2) types of <em>annuity due</em> and <em>ordinary annuity.</em>
The present value of an annuity is the amount that needs to be invested today to generate a series of equal annual cash flows in the future.
The concept of present value is based on idea that $1 today is not the same as $1 tomorrow as the former can be invested to earn interest making it higher than the later. This called the time value of money.
To calculate the present value (PV) of an annuity, we discount the series of future cash flows by a required rate of return called the discount rate. The discount rate in this question is 8.50%.
Using the formula below we can can calculate the present value (PV):
PV = A × (1 - ((1+r)^(-n))/r)
where- PV- Present value, A- annual cash flow, n- number of years, r- interest rate
= 66,000 ×( 1-(1 +0.085)^(-7))/0.085)
=66,000 × 5.1188
Present Value = $33,7842.35
