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prisoha [69]
3 years ago
11

On April 1, 2009, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What

will be the insurance expense on the annual income statement for the year ended December 31, 2009?A. $1,350.B. $450.C. $1,012.50.D. $337.50.E. $37.50.
Business
1 answer:
madam [21]3 years ago
8 0

Answer:

D. $337.50.

Explanation:

The computation of the insurance expense for the year ended would be shown below:

= Premium amount - nine-month premium

where,

Premium amount is $1,350

And, the nine-month premium would be

= Premium amount × number of months ÷ (total number of months in a year)

= $1,350 × (9 months ÷ 12 months)

= $1,012.50

The nine-month is calculated from the April 1 to December 31

Now put these values to the above formula  

So, the value would equal to

= $1,350 - $1,012.50

= $337.50

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Answer:

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Hope this answer helps you :)

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8 0
2 years ago
All functions and departments in the enterprise have tasks that they need to complete to produce outputs or ________ in order to
VMariaS [17]

Answer: 1. Deliverables

2. Objectives

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An objective in this context is a goal that an enterprise aspires towards achieving.

In every enterprise each section is tasked with producing outputs within each department, and deliver to customers. The intention is to of achieve the overall objectives set by the enterprise. Functions are designed to operate cohesively, with the aim of achieving these 2 aspects and ensuring that the enterprise runs smoothly and generates the best possible outcome.

7 0
2 years ago
Master scheduling is __________. a. a field in the master schedule record that indicates the number of units that are available
Karolina [17]

Answer:

D if this is anything related to business then there is always something that reviews everything and the most common term for it is Master scheduling.

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5 0
2 years ago
The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3
VLD [36.1K]

Answer:

a. ROE (r) = 13% = 0.13

EPS = $3.60

Expected dividend (D1) = 50% x $3.60 = $1.80

Plowback ratio (b) = 50% = 0.50

Cost of equity (ke) = 12% = 0.12

Growth rate = r x b

Growth rate = 0.13 x 0.50 = 0.065

Po= D1/Ke-g

Po = $1.80/0.12-0.065

Po = $1.80/0.055

Po = $32.73

P/E ratio = <u>Current market price per share</u>

                  Earnings per share

P/E ratio = <u>$32.73</u>

                 $3.60

P/E ratio = 9.09        

b.  ER(S) = Rf + β(Rm - Rf)

    ER(S) = 5 + 1.2(13 - 5)

    ER(S) = 5 + 9.6

    ER(S) = 14.6%

                                                                                                                                                                                                                                                                                                                                                                                     

Explanation:

In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.

In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.

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