The expected return on the common stock should decrease.
To calculate the new expected return on the common stock, we need to calculate the new value of the common stock and debt. The new value of the common stock is $64 million + $16 million = $80 million. The value of the debt is reduced by $16 million to $20 million.
The new expected return on the common stock is 16.6% * ($80 million/$96 million) = 15.63%.
Therefore, the expected return on the common stock should decrease from 16.6% to 15.63%.
A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.
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An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers' compensation plans because the employers can use duplication of exposure units in the insurance plans
<h3>What is Self-Insurance?</h3>
This refers to the type of insurance for oneself or one's interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.
Hence, we can see that An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers' compensation plans because the employers can use duplication of exposure units in the insurance plans
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Answer:
You should make sure the channel you choose is capable of creating lots of:
Time and place utilities.
Explanation:
Utility:
In business, utility is defined as the benefit or value that a customer gets from the product of a business.
- There are fours type of utilities which are: Time Utility, Form Utility, Place Utility and Possession Utility.
- Time Utility: This utility means that your product remain available to the customer at a time when the customer need it. Like if a customer wants the product available at night then it should be available.
- Place Utility: This utility means that the your product is available to the customer wherever the product is required. For example if a customer wants your product at a specific place then it should be available.
- In this questions, time and place utility were required from the manager.
Answer:
$21,000
Explanation:
Amount Received $11,000 ( Under Property Damage)
Amount Received $1,000 ( Under Medical Coverage)
Amount for Vehicle Damage ( Vehicle damage - Collision deductibles ) = ( $9,500 - $500 ) = $9,000
Total Amount Paid by policy = ($11,000 + $1,000 + $9,000) = $21000
Therefore , total amount paid by policy for this damage is $21000 .
