The main type of Insurance company includes:
- General insurance company
- Life insurance company
- Reinsurance company
<h3>What is the role of
Insurance company?</h3>
These are financial institution that provide insurance covers to intending policyholders.
Therefore, the main type of Insurance company includes general insurance company, Life insurance company and Reinsurance company.
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- Payback period of investment- In case of capital budgeting, it refers to the amount of time taken place to recover the amount or cost of investment.
- Initial cost of investment = Amount invested – Value of salvage sold
= $ 220000 – 10000
= $ 210,000
- Annual Cash inflow = Contribution margin = $ 52500
- Payback period = Initial cost of investment /Annual cash inflow
=$210000 / 52500
= 4.0 years
Hence, in four years pay back period for this investment will take place
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Answer:
Supply
Explanation:
The supply curve can be regarded as graphic representation that display
correlation that exist between the cost of a good/service as well as quantity supplied for particular period. on the left vertical axis there is price, while on Horizontal axis there is quantity supplied. The vertical distance between supply curve as well as horizontal axis is the marginal opportunity cost required to add a unit to quantity. The area under the supply curve goes up to quantity supplied is total alternative opportunity cost, and it's Summation of marginal costs.
For instance, If we plot John's opportunity cost per window on the vertical axis and the number of windows cleaned each day on the horizontal axis, we will have John's supply curve for window-cleaning services.
Answer:
B
Explanation:
Only B appears plausible.
Higher debt means higher interest costs, which would lead to lower net income.
ROA = Net Income / Assets and ROE = Net Income / Equity
Now, assets are same, equity is different. Equity for HD will be lower while that for LD would be higher. Hence, predicting ROE is difficult as we don't know equity but ROA is a bit easier.
