Answer and Explanation:
The computation is shown below:
a. The expected value of payout arise from emergency is
= 0.01 × $67,500
= $675
b. The expected value of payout arise from capped coverage insuance is
= (0.9 × $500) + (0.09 × $2,500)
= $675
c. The risk averse shows the minimum exposure with respect to the swings of the income or there would be the loss in the income. Since the payout amount is same in both the cases so here we considered option B
Answer:
Equity of the business= $17,076.
Explanation:
Equity as used in business is used to refer to the difference between the worth of a business (its assets) and what the business owes (debts and liabilities).
In other words, total equity refers to the value which is left in the company after the total liabilities must have been subtracted from the total assets.
The formula to calculate total equity is given below:
Equity = Assets - Liabilities
Therefore to calculate the equity above, we have:
Equity = $64,342 - $47,266
Equity = $17,076.
Answer:
C) $1000
Explanation:
First lets calculate the cumulative preferred stock dividend for 2 years
(1000 * 10 ) * 5% = 500 / year
so for 2 years = $1000 since it is cumulative and not paid in one year is added to next year.
Total dividend payable = $2000
so for common stock whatever is left over is paid thus,
Common stock share = Total - Preferred cumulative = 2000 - 1000 = $1000
Hope that helps.
Answer:
The correct answer is the option A: the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Explanation:
To begin with, the fact that a company faces the dilemma between continue with the current business lineup or change it in order to begin producing a new one by starting from zero then a lot of variables must be taken care of and considered, that is, that at the moment of making the final decision the managers must understand the opportunity costs that can affect the organization and moreover the benefits that the actual lineup makes. That is why, that at the time of sticking with the current business lineup it makes sense to continue with the current one when the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Answer: Constraint
Explanation:
The company data is not attached but this should be correct.
Constraints enable companies and entities to engage in sensitivity analysis which would enable them find out optimal quantities of production and production strategy.
Constraints show how much of something is needed to get something done so in making time the constraint, the company is trying to find out how much time is needed in the fabrication department for goods in order for profits to be maximized.
