All categories

3 years ago

What is insurance??????

Business

1 answer:

densk [106]3 years ago

3 0

Answer:

“a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.” - Oxford language

Explanation:

Hope this helped

You might be interested in

A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is

cricket20 [7]

Answer:

If the yield to maturity remains at 8%, then the bond's price will decline over the next year.

Explanation:

When the bonds sells at a premium it means that the coupon payment is greater than the yield to maturity, which means that the income generated by the bond is greater than return required by the investor and because of this the bond sells at a premium because the investor is willing to pay more for the bond as it offers more income than its required rate of return. With a premium the bond price increases to a point where the coupon and required return become equal. When the bond has 10 years to maturity it means that it will give 10 equal payments to the investor which will be greater than the investors required return therefore the investor will be willing to pay a higher price for the bond, as the maturity decreases the number of payments which will be higher than the required return also decrease, so for example if there are 5 years to maturity then the bond will pay 5 payments that are greater than the required return so the investor will be paying a lower premium compared to when he was getting 10 payments that payed more than his required return.

8 0

3 years ago

Western Electric has 31,500 shares of common stock outstanding at a price per share of $78 and a rate of return of 13.05 percent

S_A_V [24]

Answer:

WACC = 11.13%

Explanation:

total market value common stocks = 31,500 x $78 = $2,457,000

total market value of preferred stock = 7,250 x $94.50 = $685,125

total market value of debt = $401,000 x 1.105 = $443,105

total = $3,575,230

Rcs = 13.05%

Rps = $7.70 / $94.50 = 8.15%

Rd = 8.05%

WACC = ($2,457,000/$3,575,230 x 13.05%) + ($685,125/$3,575,230 x 8.15%) + ($443,105/$3,575,230 x 8.05% x 60%) = 8.968% + 1.562% + 0.6% = 11.13%

8 0

3 years ago

.According to supply-side fiscal policy, reducing tax rates on wages and profits will:

sergejj [24]

Answer:

The answer is C.

Explanation:

Reducing tax rate according to supply - side policy creates demand pull inflation.

Demand pull inflation is a situation whereby people have more buying power due to the availability of cash thereby leading to high demand and consequentially leading to an increase in the price of goods and services by suppliers.

That is the process where demand outplays supply due to the high purchasing power thereby causing price to increase which is the demand pull inflation effect.

6 0

3 years ago

Your current account balance is $215. you have $322 of expenses each month. your income is $444 per month. how long will it take

sladkih [1.3K]

It will take me at least or approximately 7 months to accumulate a balance of $1000 in my account

6 0

3 years ago

Stoneheart Group is expected to pay a dividend of $3.11 next year. The company's dividend growth rate is expected to be 4.2 perc

lukranit [14]

Answer:

$43.19

Explanation:

Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.

P0 = D1/(r-g)

P0 = Current price

D1 = Next year's dividend = $3.11

r = investors' required return = 11.4% or 0.114 as a decimal

g = dividend growth rate = 4.2% or 0.042 as a decimal

P0 = 3.11/(0.114 - 0.042)

P0 = $43.19

Therefore, this stock price is $43.19

8 0

3 years ago