It is a bad idea because a minimum auto liability insurance policy is meant for compensation against liability and not for saving purpose.
<h3>What is the
liability insurance?</h3>
It is a legal requirement to have an active minimum liability insurance coverage to cover a liability especially injury and damage to third party property
In conclusion, the idea of saving money with the insurance policy is bad because it is meant for compensation against liability and not for saving purpose.
Read more about liability insurance
<em>brainly.com/question/15933666</em>
Answer:
Differential cost= $9.25
Differential revenue= $16
Explanation:
As the name suggest, differential cost is the difference between the costs of two alternative options. Now in this question, Patridge Co. has two products, PJ AND PD, <em>one of which (i.e PD) can be produced by further processing an already produced product (i.e PJ). But for the production of product D, Patridge Co. would have to incur additional cost of $9.25 per pound. </em>
The formula for differential cost is as follows;
Differential cost= total cost of alternative J - total cost of alternative D
Differential cost= $15.75 - ($15.75+$9.25)
Differential cost= $9.25
Differential revenue is similarly the difference between the revenue generated by two alternatives. In this question product J sells for $21 whereas product D sells for $37 so the differential revenue would be as follows:
Differential revenue = revenue of alternative D - revenue of alternative J
Differential revenue= $37 - $21
Differential revenue= $16
Answer:
option I: When evaluating a capital budgeting decision, we generally include interest expense.
Explanation:
Capital budgeting can simply be defined as the process by which a company evaluates prospective expenditures or investments that will be of a lucrative deal to the company. they are any project undergo by firms or companies that will bring a great deal of money and value to the company.
capital budgeting decisions usually are of different kinds as it ranges from mutually exclusive projects,accept-reject decision or acceptance rule and the capital rationing decision
capital budgeting covers the process of investing money for the company with the view that or of generating positive returns and does not include interest expense.
Answer:
Absolute scarcity: First, it may be that there are simply insufficient quantities of a resource to meet human needs or wants. ... Relative scarcity: Second, there may be physical quantities of a resource present but scarcity exists because of problems about supply or distribution.Jan 19, 2012
Explanation:
Answer:
6.88%
Explanation:
cost of equity = (next period dividend / by price) + growth rate in dividends.
cost of debt = yield to maturity x (1 - tax rate)
WACC = weight of debt x cost of debt + weight of equity x cost of equity.
cost of equity = ($0.25 / $40) + 0.07
= 0.07625
cost of debt = 0.09 x (1 - 0.4)
=0.054
WACC = ($40Billion x 0.07625) / 60billion + ($20 billion x 0.054) / $60billion
= 0.05083 + 0.018
= 0.0688 or 6.88%
