Question Completion:
Group of answer choices:
a. Due to the possibility of earthquake damage, Gubenator should decline coverage for the Freedom Tower.
b. Given the notoriety of the tower and the likelihood of positive press for providing coverage, Gubenator should insure the Freedom Tower.
c. Gubenator has the financial capacity to issue the policy.
d. Gubenator should insure the Freedom Tower only if it can obtain reinsurance for part of the risk from other insurance companies, since a total loss could be catastrophic to Gubenator.
Answer:
American Builders, Inc (Freedom Tower) and Gubenator Insurance Company
d. Gubenator should insure the Freedom Tower only if it can obtain reinsurance for part of the risk from other insurance companies, since a total loss could be catastrophic to Gubenator.
Explanation:
Option A establishes that the earthquake occurrence is a possibility and not a probability. That means it cannot be reasonably estimated that an earthquake may occur. Gubernator exists to insure property against the occurrence of risky events. It should go ahead and do its business. And it can spread the risk with other insurance companies through Reinsurance. Gubernator is not in the business of looking for cheap publicity, so option B is ruled out. Given that the Freedom Tower will only be one of the many properties insured by Gubernator, we cannot use its current capital to judge its capacity to handle the Freedom Tower; thus ruling out option C.
Answer:
D. the four largest firms produce at least 70–80 percent of the output.
Explanation:
Answer:
$510 is costs assigned to ending inventory
Explanation:
According to Last-In- First-Out method of inventory valuation , items of stock received last is sold first.
As a result, the sale of 390 units on January 26 is from the purchases of 25 January (110 units), January 9 (80 units) and 200 units from the purchase made on January 1st.
Above all, closing inventory is items bought on January 1st.
Value of closing inventory=150*$3.40=$510
Answer:
The value of the levered firm is $917.35 million
Explanation:
To calcuate the value of the levered firm under the Miller Model, we have to use the following formula:
Value of levered firm (VL) = Value of unlevered firm(VU) + [1- { (1-Tc) * (1-Te) / (1-Td) } ] * Value of Debt (D)
= $850 million + [1 - { (1-0.34) * (1-0.25) / (1-0.30) } ] * $230 million
= $917.35 million. Value of levered firm (VL)
The additional expenses required in order to avoid keeping currency during periods of inflation are known as shoe leather costs.
<h3>What do you know about holding cash?</h3>
The reasons for keeping cash are pretty straightforward. Cash inflows and outflows may balance each other out, or the outflows occasionally exceed the inflows. Hence, to cover up these eventualities, organizations hold cash to meet certain unpredictable situations.
The term "transaction motive" refers to the need for cash that a business has for ongoing operations. In general, the business needs cash to pay employees' salaries, rent, pay for labor, acquire items, and other expenses. On the receiving side, the business receives money from customers, debtors, and other sources. The inflows and outflows do not always coincide. As a result, the company keeps some cash on hand to fill this shortfall.
To know more about holding cash, visit:
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