Answer:
c. Waiver of Premium
Explanation:
A waiver of premium is clause in an insurance contract in which the insurance company promises not to oblige the insurer to pay a fee to maintain the contract in some extraordinary cases: these cases are usually either disability or death.
Because in the case of this question the insured is concerned about becoming disable and losing the ability to pay for the contract, he is likely to benefit from a waiver of premium included in his insurance contract.
Answer:
a. $144 million
Explanation:
The computation of the amount of money raised is shown below:
But before that we have to find out the amount raised and underwriting fees which is given below:
Amount raised by company is
= 4 million × $37.5
= $150 million
And,
underwriting fees is
= $150 million × 4%
= $6 million
So, amount raised by the company is
= $150 million - $6 million
= $144 million
We deduct the underwriting fees from the raised amount
Answer:
in·ter·est
/ˈint(ə)rəst/
Learn to pronounce
See definitions in:
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Commerce
Law
noun
1.
the state of wanting to know or learn about something or someone.
"she looked about her with interest"
Similar:
attentiveness
undivided attention
absorption
engrossment
heed
regard
notice
scrutiny
curiosity
inquisitiveness
enjoyment
delight
Opposite:
boredom
2.
money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
"the monthly rate of interest"
Similar:
dividends
profits
returns
a percentage
Explanation:
Answer:
is that reservation is the act of reserving, withholding or keeping back while installment is the act of installing; installation or installment can be a portion of a debt, or sum of money, which is divided into portions that are made payable at different times payment by installment is payment by parts at different
Answer:
12%
Explanation:
For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:
Weight of capital structure
For debt
= $200 million ÷ $400 million
= 0.50
For equity
= 50 million × $4 ÷ $400 million
= 0.50
Now the WACC is
= 0.50 11% + 0.50 × 5%
= 8%
Since the value fo equity is declined by
= 50 × $3
= $150
Now the equity cost of capital is
= WACC + (WACC - interest rate) × (debt ÷ equity)
= 8% + (8% - 5%) × (200 ÷ 150)
= 12%
