William pays $500 every 6 months as a premium on his car insurance with collision coverage. If William were to get in an accident and file a claim, he would pay $750 as a deductible and the insurance would cover the cost of repairs to the vehicles. When you file a claim against your insurance, your next set of premiums typically rise in the event it were to happen again, it brings in more money to the insurance agency. Since William’s car is $700 to fix and the other drivers car is $1,100 to fix if William does not file a claim with his insurance, he will pay an out-of-pocket amount of $1,100 to have the other car repaired.
Answer:
Dividend growth rate is 4.94%
Explanation:
The share price formula comes handy in this case in determining the dividend growth rate.
Share price=Next year dividend/expected return-dividend growth rate
share price is $83
next year dividend is $5.61
expected return is 11.7%
Dividend growth rate is the unknown which is denoted by g here
$83=$5.61/11.7%-g
by cross multiplication the equation becomes:
$83*(11.7%-g)=$5.61
divide both sides by $83
11.7%-g=$5.61/$83
11.7%-g=0.06759
g=11.7%-0.06759
g=0.117-0.06759
g=0.04941
g=4.94%
Answer: Incomplete question.
Match the following terms to there definition.
Explanation:
1. Tells whether a company can pay all its current liabilities if they become due immediately - Quick Ratio
2. Measures a company's success in using assets to earn income - Return on Assets
3. The practice of comparing a company with other companies that are similar - Benchmarking
4. Indicates how rapidly inventory is sold - Inventory turnover
5. Shows the proportion of a company's assets that is financed with debt - Debit Ratio
6. Tells the percentage of a stock's market value that the company returns to stockholders annually as dividends - Dividend Yield
7. Measures a business's ability to pay interest on its debt - Interest coverage ratio
8. Measures a company's ability to collect cash from credit customers -
Account Receivable Turnover
Answer:
$11
Explanation:
"The required return for the computer chip industry is 15%, and the company has just gone ex-dividend (i.e., the next dividend will be paid a year from now, at t 1) (Round your answer to 2 decimal places.)"
g = ROE*b
g = ROE * (1-Payout ratio)
g = 20% * (1-0.5)
g = 10%
P0 = D1/k-g
P0 = D0(1+g) / k-g
P0 = 0.5(1+0.10) / (0.15+0.10)
P0 = $11
S0, the market price of Chiptech stock is $11
Answer: The move by her is wrong and goes against the ethics of the institution.
Explanation:
The move by the Investment Adviser Representative is wrong because she goes against the ethics of what the institution holds. The IAR must approve her contents and her blog before she can publicize contents on the blog or promote anything on the blog. Since she belongs and registered with the organization, the right thing would have to done or she'll be brought to book by the institution.