Answer:
1. The difference between : Moral Hazard
<u>Intentions </u> - An individual is aware of what he is doing and intentionally goes for the risk because he knows he is covered and will gain as the payment or any related cost to sustaining an injury or a loss will not be paid by him but will be paid for by the insurance as it covered. Actions are intentional and potential risks increases as the behavior becomes irresponsible and careless.
Morale Hazard
<u>Intentions </u> - An individual's behavior unintentionally changes and so does the attitude toward the insured item changes. Here an individual losses responsibility unintentionally and unconsciously acts reckless as they know know it is insured.
main difference are intentions
Moral Hazard is an important concept to insurance companies because Insurance companies need to know the intentions of the person, insurance is not for gain but for cover against the possibility of a risk and the person insured should not seek for the risk and actually drive the risk or be the cause of the risk occurring.
2. No, I do not think it should be eliminate. it is obvious that moral hazard does in a way seem like it is encouraging bad behavior but risks must be insured. The insurance companies should enforce some claim charges for this kind of insurance.
Explanation:
Explanation:
Let the dividend paid in Year n be Dn
Given, D3 = $1.10
D4 = $1.10
D5 = $1.10
Growth in dividend from Year 6 = g = 3.2%
D6 = D5(1+g) = 1.10(1+0.032) = $1.135
Required Return = r = 13.1%
According to Gordon's Growth model,
P5 = D6/(r - g) = 1.135/(0.131 - 0.032) = $11.464
Present Value of the stock = P0 = D3/(1+r)3 + D4/(1+r)4 + D5/(1+r)5 + P5/(1+r)5
= 1.10/(1+0.131)3 + 1.10/(1+0.131)4 + 1.10/(1+0.131)5 + 11.464/(1+0.131)5
= <u>$8.22</u>
Answer:
The correct answer is false.
Explanation:
This statement is false because all funds acquired through earnings have an intrinsic cost that must be determined at the time of withholding them, which must be taken into account during the sale process of any title that is part of the estate. business.
Answer:
Manufacturing overhead cost applied= $280,720
Explanation:
Giving the following information:
Plantwide predetermined overhead rate of $23.20 per direct labor-hour.
Estimated $278,400 of total manufacturing overhead cost.
Estimated activity level of 12,000 direct labor-hours.
The company incurred actual total manufacturing overhead costs of $269,000 and 12,100 total direct labor-hours during the period.
Manufacturing overhead cost applied= actual direct labor hours* predetermined overhead rate
Manufacturing overhead cost applied= 12100* 23.20= $280,720
