Answer: Option A
Explanation: In simple words, human capital refers to the economic value of an individual employee to the organisation in which he or she works as based on the skill sets and experience that he she possess.
The economic value can be created using various tools like education, training, good health or loyalty etc. Human capital is considered as an intangible asset but is not recorded in the balance sheet of the company as it cannot be quantified.
However, it is considered as the most important asset because the effective use of other resources depends on the human capital of an organisation.
Though I have no experience in business, I would say it is True.
Answer: The correct answer is "B. lower".
Explanation: The insurance premium is one of the central elements of the contract since it is the price that the insured pays for the coverage he receives. Its value will depend on the type of risk insured and is always fixed in advance by the insurance company. It must be sufficient for the insurer to face the insured risk, calculating that not all the insured will need the coverage, that is, statistically, there is a probability that it will happen or not.
The premium is lower in a survivorship life policy as compared to the premium in a joint life policy.
<span>this assumption is false. Liquidity of money refers to the ease with which the owner of an asset can convert it into cash. it is easier to convert common stocks into cash rather than attempt to raise cash from sale or mortgage of real estate assets.</span>
Answer:
c) $5.68
Explanation:
The worth of this stock today is the present value of the future dividends which is computed by discounting future dividends as well as the terminal value using the required rate of return of 14.5% as the appropriate discount rate as shown thus:
Year 1 dividend=$.65
Year 2 dividend=$0.70
Year 3 dividend=$0.75
terminal value of dividends=Year 3 dividend*(1+g)/Ke-g
g=dividend terminal growth rate=2%
Ke=required rate of return=14.5%
terminal value of dividends=$0.75*(1+2%)/(14.5%-2%)=$ 6.12
Share price=$.65/(1+14.5%)^1+$.70/(1+14.5%)^2+$.75/(1+14.5%)^3+$6.12/(1+14.5%)^3
share price=$5.68
