2 million dollars
SLE is Exposure Factor * asset value
Exposure factor is an estimate of the impact of the risk divided by value of asset (2mil/10 mil = .2)
.2* 10,000,000= $2,000,000
Output and input levels always tend to an equilibrium point it the long run, meaning they are inelastic in the long run.
Elasticity refers to how much supply and/or demand changes with changes in pricing. The more elastic, the more change there is.
In the short-term, output and and supply can change dramatically, but in the long run things tend back to the middle (equilibrium).
Answer:
In order to find the price of a stock which has different growth rate at different periods, we need to find the price at a time when the growth rate slows down after the initial burst of growth and is stable, in this case its in the 4th period.
Year 4 dividend = 2.07
Growth rate (G)= 8%
Required return (R)= 12%
DDM formula for stock price = D*(1+G)/R-G
2.07*(1+0.08)/0.04
=55.89
The maximum that you should be willing to pay for the stock 4 years from now is $55.89 but in order to find out what the maximum we should pay for the stock now, we need to discount this price 4 years back to the present value using the required return of 12 %
so 55.89/1.12^4=35.52
The maximum that you should be willing to pay for the stock now is $35.52
Explanation:
Answer:
Fronting policy is a risk management technique in which an insurer underwrites a policy to cover a specific risk, but then cedes the risk to a reinsurer. Fronting policies are most commonly used by large organizations, and is a type of alternative risk transfer
Explanation:
