Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year
Answer:
The Intrinsic value is calculated by multiplying the Earnings per share by the P/E ratio.
1. The lowest P/E ratio is 21.37 so the intrinsic value is;
Intrinsic value = 2.1 * 21.37
= $44.88
2. Highest P/E ratio is 23.49
Intrinsic value = 2.1 * 23.49
= $49.33
3. The average P/E ratio is;
= (22.07 + 23.49 + 21.37)/3
= 22.31
Intrinsic value = 2.1 * 22.31
= $46.85
Because your basically loaning the bank your money for them to use and they pay you a fee.
Answer:
c.
Explanation:
Based on the information provided within the question it can be said that this can be analyzed by anthropologists as a form of negative reciprocity. This term refers to when an action has a negative effect on someone else and that person then undertakes another action which has the same effect on another person, and so on. As is being described in this scenario as each person takes an action in order to get the best deal they possibly can, but at the same time undercutting those around.
Answer:
The answer is $750 millions
Explanation:
After recapitalization, the Weight of Debts of Nichols Corporation is 25%. Hence, its Weight of Equity Capital is: 100% - 25% = 75%.
The formula of Value of Operations as follows:
Value of Operations = Weight of Debts x Value of Debts + Weight of Equity Capital x Value of Equity Capital
Because Nichols Corporation's value of operations is equal to $600 million after recapitalization, we have the following equation with S as the value of equity after the recap:
600 = 25% x 150 + 75% x S
=> S = (600 - 25% x 150) / 75% = 750
