The answer is Sullivan Principles. General Motors embraced what came to be named as Sullivan principles. This is name after Leon Sullivan which is also a member of GM's Board of Directors. Sullivan contended that it was morally right for GM to function in South Africa so long as two circumstances were satisfied. First, the company should not follow the apartheid laws in its own South African operations. Second, the firm should do all within its power to endorse the elimination of apartheid laws.
Answer:
. E. combined ratio after dividends minus the investment yield
Explanation:
The operating ratio for a PC insurer
can be regarded as the comparison of total expenses of a company compared to net sales generated or the generated revenue. The operating ratio gives the measurement of a overall operational profitability of a firm from both underwriting as well as investment activities. It can be calculated by finding the ratio of
(property's operating expense after substraction of depreciation) and ( the gross operating income). It should be noted that The operating ratio for a PC insurer equals combined ratio after dividends minus the investment yield.
Answer:
<em>Operating Lease</em>
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Explanation:
5years / 6 years = 83.33% above 75% of the useful life
the ownership reverts at the end of the lease
the lessor has risk considering the residual value is not guaranteed
We aren't given with information about the asset value to check if it is paying the entire value of the asset.
But for the information given we can conclude it is an operating lease.
Answer:
r= 16%
Explanation:
The Common Stock Valuation method is also simply referred to as the Value of the Stock Method and it is calculated taking different items such as growth rate of dividend, the dividend itself and number of periods into consideration
FIrst, we identify the formula of rate of return where dividend inceases constantly and at a compound rate
P0 = Div1/ r-g
Where Po is the price of the stock, Div1 is the next year's dividend, r is the rate of return and g is the growth rate of teh dividend
Secondly, we look at the growth rate with thereinvestment of 40% stock and a rate of return on reinvestmetn of 15% according to the question
Growth rate = r x e, where r is the rate of return and e is the reinvestment earning
Growth rate = 0.15 x 0.40 = 0.6
Finally, we calculate The rate of return or the discount rate using the first formula
P0 = Div1/ r-g
$40 = $4/r-0.06
r = ($4/$40) + 0.06
r= 16% or 0.16
