Explain the imortance of feedback in the communication process.(3marks)

A person has a net asset of $1 million, including a $300,000 net equity of a house (market value of the house – mortgage). Speci

Elenna [48]

Answer:

Answer for the question:

A person has a net asset of $1 million, including a $300,000 net equity of a house (market value of the house – mortgage). Specifically, the house has a market value of $600,000 including $400,000 for the structure and $200,000 for the land, and a mortgage of $300,000. The person plans to buy $400,000 fire insurance for full coverage of the house. For simplicity, assume that each year the house has a 1% probability of being totally destroyed by fire and a 99%

probability of no damage occurring to the house. The person’s

utility for money is approximately proportional to the quartic root of money with U($100,000,000)=1,000 and U($0)=0. 7a.(5 points) Draw the decision tree for the person’s decision

of buying or not buying the insurance. 7b.(10 points) Determine the maximum insurance premium IP the person would be willing to pay. 7c. (5 points) What is the risk premium at the maximum IP?

Bonus Problem

(20 points) Determine the maximum insurance premium the person would be willing to pay for a $300,000 insurance just to cover the mortgage.

(Hint: in this case, the house is under-insured. Inother words, with the $300,000 insurance, if the house is totally destroyed by fire, the person willsuffer a loss in the net asset because the insurance covers only the mortgage not the full net equity of the house, and the maximum insurance premium the person would be willing to pay will need to be determined through numerical iterations).

is given in the attachment.

Explanation:

5 0

3 years ago

On January 1, 20X9, Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash. The fair value

Ainat [17]

Answer:

Consider the following calculations. The answer is $135,000.

Explanation:

Book value of inventory of acquiring company before combination = $90,000

Fair value of acquired inventory = $45,000

Amount of total inventory immediately after business combination = $90,000 + $45,000 = $135,000

Hence, answer is $135,000

7 0

3 years ago

Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amou

TiliK225 [7]

Answer:

1. The most you would be willing to pay for having a freshly washed car before going out on a

date is $6. The smallest amount for which you would be willing to wash someone else's car is

$3.50. You are going out this evening, and your car is dirty. How much economic surplus

would you receive from washing it?

The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)

minus your cost of doing the job ($3.50), or $2.50.

2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market

for 30 cents per pound. By adding compost to your garden, you can increase your yield as

shown in the table below. If compost costs 50 cents per pound and your goal is to make as much

money as possible, how many pounds of compost should you add?

Pounds

of

compost

Pounds

of

tomatoes

Marginal

Cost

($)

Marginal

Benefit

(pounds)

Marginal

Benefit

($)

Net

Benefits

Marginal

Net

Benefits

0 100 ---- 0 --- 0 ---

1 120 0.50 20 6.00 5.50 5.50

2 125 0.50 5 1.50 6.50 1.00

3 128 0.50 3 0.90 6.90 0.40

4 130 0.50 2 0.60 7.00 0.10

5 131 0.50 1 0.30 6.80 - 0.20

6 131.5 0.50 0.5 0.15 6.45 - 0.35

The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes

that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of

compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than

covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost

gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than

the cost of the compost. You should add 4 pounds of compost and no more.

3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are

allowed to put out as many cans as they wish. The average household disposes of three cans of

garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each

can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not

reusable. What effect do you think the introduction of the tag system will have on the total

quantity of garbage collected in your city? Explain briefly.

In the first case, the cost is $6/week no matter how many cans you put out, so the cost of

disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra

can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag

system, we would expect this system to reduce the number of cans collected.

Explanation:

8 0

4 years ago

A leader who is more about collaboration than command and control would be said to be _____________ .

yanalaym [24]

Answer:

The correct answer is letter "A": an interactive leader.

Explanation:

Interactive leaders are those who are involved in the day-to-day activities of their subordinates coordinating what is necessary for them to perform their activities efficiently. These leaders promote a horizontal hierarchy within their companies.

Interactive leaders are seen as power-sharing executives since they do not limit subordinates' decision-making but monitor them closely to verify if they are meeting the expectations that will contribute achieve the overall goal of the team.

8 0

3 years ago

Employees who work on commission typically work in<br> education

faltersainse [42]

Answer:

Is this true or false? What are the options to answer

Explanation:

A sales commission is a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services. Employers sometimes use sales commissions as incentives to increase worker productivity. A commission may be paid in addition to a salary or instead of a salary. The Fair Labor Standards Act (FLSA) does not require the payment of commissions.

8 0

3 years ago