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puteri [66]
3 years ago
14

An insurance company’s projected loss ratio is 77.5 percent, and its expense ratio is 23.9 percent. It estimates that dividends

to policyholders will add another 5 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio? (LG 15-6)
Business
1 answer:
Elanso [62]3 years ago
6 0

Answer:

6.4%

Explanation:

For computing the minimum yield on investment, first we have to find out the combined ratio which is shown below:

= Projected loss percentage + expense ratio + dividend percentage

= 77.5% + 23.9% + 5%

= 106.4%

So, the minimum yield on investment required is

= 106.4% - 100%

= 6.4%

The 100% is the percentage value

We simply applied the above formula

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Details of invoices for purchases of merchandise are as follows: Merchandise Freight Terms Returns and Allowances(a) $2,800 $45
Lostsunrise [7]

Answer:

A.$2,619

B.$6,800

C.$839

D.$495

Explanation:

Calculation to Determine the amount to be paid in full settlement of each of the invoices,

a) (2,800-200)*99%+45

=2,600*99%+45

=2,574+45

= $2,619

b) (7,600-800)

= $6,800

c)$1,400 – $600 – $16 + $55

=$784+$55

= $839

d)$500 –$5 = $495

6 0
3 years ago
Most amateur athletes eventually become professional athletes.<br> True<br> False
andrey2020 [161]

Answer:

False

Explanation:

6 0
3 years ago
The Havard Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $
Snowcat [4.5K]

Answer:

$102.34

Explanation:

to be able to use the Gordon growth model, we must first determine the growth rate:

(4.15 - 4) / 4 = 3.75%

(4.35 - 4.15) / 4.15 = 4.82%

(4.58 - 4.35) / 4.35 = 5.29%

we can assume that the company will expect the growth rate to be 5.29%

stock price = (dividend + growth rate) / (required rate of return - growth rate)

= ($4.58 x 1.0529) / (10% - 5.29%) = $4.82 / 4.71% = $102.34

3 0
3 years ago
A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not
Yuliya22 [10]

Options:

A) Select distributors; don't let them select you.

B) Look for distributors capable of developing markets.

C) Give local distributors control over marketing strategy.

D) Treat local distributors as long-term partners.

E) From the start maintain control.

Answer:B) Look for distributors capable of developing markets.

Explanation: A Distributor is a person or an organization saddled with the responsibility of transferring products from one point to another. An independent Distributor is a person or an organization which is not owned by the person or Organisations that it serves.

One of the best guildlines for selecting independent distributors is to select a distributor that is capable of developing markets which may be a new market or an existing market.

3 0
2 years ago
Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its aver
GaryK [48]

Answer:

$134,500

Explanation:

Total manufacturing overhead = Variable overhead + Fixed overhead

Variable overhead= $1.3 * 10,000 units= $13000  

Fixed overhead = $13.50 * 9000 units = $121,500

Total manufacturing overhead= $13,000+$121,500

= $134,500

4 0
2 years ago
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