If the insurer takes the policy as applied for the coverage will take effect when the conditions of the receipt are met and from the date of the application or medical exam. The two types of conditional receipts are insurability and approval. The insurability receipt provides interim coverage as the applicant is insurable while the approval receipt will not begin until the insurer will approve the claim. However, conditional receipts will provide the coverage if the applicant is insurable as applied for and coverage will not be delivered until the applicant accepts the coverage if the insurer concerns a counter-offer because the applicant is substandard risk.
Answer:
(a) $1,760
(b) $1,100
Explanation:
Given that,
Skysong, Inc. made three purchases of merchandise:
(1) 320 units at $5
(2) 420 units at $7
(3) 520 units at $8
Units on hand at the end of the period = 220
(a) Under FIFO method,
cost of ending inventory:
= Units on hand at the end of the period × $8 (From the last purchase)
= 220 × $8
= $1,760
(b) Under LIFO method (Comprise units from the first purchase),
cost of ending inventory:
= Units on hand at the end of the period × $8 (From the first purchase)
= 220 × $5
= $1,100
I'm going to guess, but i would say the best answer would be B. They could file for Chapter 7 bankruptcy and discharge most of their debt.
Answer:
Rate of return a firm must earn on its existing assets to maintain the current value of its stock.
Explanation:
The expected return is calculated on cost of capital, and that the cost of capital is weighted average cost of capital.
This is because weighted average cost of capital is the cost of capital which is based on the overall risk and weights of capital in the total capital of the company.
When the net return on total capital is less than weighted average cost of capital it means the company is not able to meet the total cost of capital and accordingly, the company faces some sort of losses.
Therefore, minimum return shall be equal to weighted average cost of capital.
