Answer:
The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.
At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.
Explanation:
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had they were in the room alone
This is further explained below.
<h3>What is an insurance policy?</h3>
Both the insured person and his wife are engaged in an accident that occurs head-on. The husband passes away in an instant, and the wife follows him in passing 15 days later. The death benefit is paid out by the firm to the estate of the covered person. This suggests that the life insurance coverage would not have paid out if they were alone in the room.
In conclusion, A legal relationship exists between an insurance firm, often known as the insurer, and the person(s), business, or entity that is being covered under the terms of an insurance policy (the insured). Reading your policy gives you the ability to check that it satisfies your requirements and ensures that you comprehend both your duties and those of the insurance business in the event of a loss.
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Answer:
What the other person said
Explanation:
Answer:
Firm A should accept the project beacause it has high required rate of return which means low risk involved.
Explanation:
Rate of return = risk free return + Beta ( market risk premium)
Firm A
rate of return = 0.045 + 1.2 (0.07)
= 0.045 + 0.084
= 12.9%
Firm B ;
rate of return = 0.045 + 0.9(0.07)
= 0.045 + 0.063
= 10.8%
