J requests insurance on a neighbor's home in his own name. The insurance producer explains that such a policy also would violate the principle of: a. subrogation b. assignment c. warranty d. insurable interest
Q: 17) What is the total risk (measured by standard deviation) of a two-asset portfolio made up of:…
A: Solution:- Total risk is measured by standard deviation of a portfolio. It means that how much will…
Q: of the following is NOT true in swap market participation by the commercial bank? a. Commercial bank…
A: Swap is derivative contracts in which the there are contracts for payment of interest payments of…
Q: What is the effective interest rate p.a. on an overdraft facility where the bank requires 3.5%…
A: Value of bank overdraft=Utilization rate×Maximum limit=70%×NOK 500,000=NOK 350,000
Q: list and explain three internal and at least three external sources of finance that are available to…
A: Sources of Finance: It refers to the places from where a firm or business can obtain money to fund…
Q: A trader took a short position on 122 European call options (lot size: 100 securities in one option…
A: When you take short positions than you will get profit if the prices goes below the strike price of…
Q: Discuss different forms of risk that any multinational enterprise might be exposed to the recent…
A: Geopolitics is a discipline of international politics that examines political power in relation to…
Q: Treasury bills have a maturity of: A)Fixed 5 years B)Shorter than 1 year C) No maturity D)Longer…
A: Treasury Bills are the short term money market instruments which are issued to raise finance for…
Q: A firm has projected sales in May, June, and July of P10,000, P20,000, and P30,000, respectively.…
A: Usually, the Firm needs to assess the cash position to assess the cash requirement from time to…
Q: You have a certain investment with the shown cash flow diagram. The investment rate is 15% and the…
A: To Find: Value of X
Q: Explain why nations trade, using the Heckscher-Ohlin model. Further, explain the pattern of trade…
A: Trade is the voluntary exchange of goods and services between various economic agents. Both parties…
Q: A proposed 4-year project has an initial cost of $236,000, projected sales of 4,500 units a year, a…
A: Calculations are done on excel so there is no intermediate rounding. Hence, values calculated are…
Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…
A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…
Q: What is the present value of the following set of cash flows at an interest rate of 5%; $2000 at the…
A: Interest rate = 5% Year Cash flow 1 2000 4 6000
Q: Project 3 Carolina Company, Inc. is considering purchasing a new gluing machine. The gluing machine…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: An investment project has the following characteristics: Cost, P22,820; Annual cash inflows, P5,000;…
A: The answer is option A. 7 years. Useful Life of the project = 7 years.
Q: Stock ABC has a beta of 1.25 and stock XYZ has a beta of 0.55. Which stock would you buy if you knew…
A: Beta is a statistical factor which shows the systematic risk involved in particular assets. It…
Q: How much money is invested at each rate?
A: Investment: It represents an asset that is acquired for the purpose of income generation or price…
Q: Chambers Company has just gathered estimates for conducting a breakeven analysis for a new product.…
A: Break-even point is a level where the company neither has gain nor loss. If sales are made above…
Q: if martha puts in 100$ in a bank today at 6 % how much will she have in three years
A: Accumulated Value after 3 years = Deposit Amount*(1+i)^3 = 100*1.06^3 = 100*1.1910160 = 119.10160 =…
Q: D3) Suppose the interest rate is 7.3% APR with monthly compounding. What is the present value of an…
A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…
Q: Provide an evaluation of two proposed Investments which are expected to provide cash flow forecasts…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Zero coupon bond yields and oil forward prices for the next three years are: Year 1 2 3 Oil Forward…
A: A swap is a financial contract where there is an agreement between parties to exchange financial…
Q: Comparing labor productivity , suppose the United States has an absolute advantage over Costa Rica…
A: A country should take competitive advantage of the items in which it is specialized by exporting…
Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…
A: Earnings per share(EPS) refers to an indicator or a financial ratio that shows how much a company is…
Q: How much capital could be invested in a new method if it is estimated that $5,000 would be saved the…
A: Capital Invested: The expenditure of funds to finance a company's long-term growth is known as…
Q: Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project…
A: The profitability index is one of the financial tools that determine the attractiveness of a project…
Q: Question 10 Which one of the followings is NOT a drawback of DGM (Dividend Growth Model)? a. The…
A: Dividend growth model is used quite extensively for the calculations of value of stock using…
Q: Lionel Company has 1,500 units of bonds outstanding. Each unit has $100 face value, 6% coupon rate…
A: Here, Units of Bond is 1,500 Face Value of Each Bond is $100 Coupon Rate is 6% Coupon Compounding…
Q: ompany sells 280,000 units annually, at a price of (65 $/unit). The company ated to explore the…
A: The profit of the company is sales minus variable cost and fixed cost and labor cost. To increase…
Q: An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine its…
A: Here, Cost = P67,000 Life = 10 years Salvage Value = P53,500 (after 10 years) To Find: Book Value at…
Q: Regarding Efficient Market Hypothesis (EMH), which of the following statements is TRUE?…
A: The answer is option 3. If the semi-strong form of EMH is true, you cannot beat the market by…
Q: If you can earn 13% percent on similar-risk investments, what is the most you would be willing to…
A: Investment: It refers to an asset acquired for the purpose of generating income or price…
Q: ABC common stock is expected to have extraordinary growth in earnings and dividends of 26% per year…
A: The current share price of a stock can be derived from the future earning potential of the stock. A…
Q: Please provide an example of a digital platform and discuss its prospects for taking business from…
A: Digital platform is the platform in which there is facility that a person cab do shopping, banking,…
Q: A corporate bond's return becomes less uncertain as default risk increases. True or False.…
A: A bond is a financial instrument that represents a loan made by an investor to a borrower (usually a…
Q: 1.Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2018 a customer asked…
A: Answer - Salvage value = 12% * P, where P is Purchase price Cash flow = $140,000 Rate of return =…
Q: BBA Limited is a levered firm having a debt-equity ratio of 1:3. It has financed its capital via…
A: The question is related to Capital Budgeting and cost of capital. The Weighted Average Cost of…
Q: what is the present worth (PW) for the following cash flow?. Use (i=6%) Annual payment= $100 per…
A: Present worth of a future amount can be calculated as: = Future amount * Present Value Factor (i%, n…
Q: What are cost-control processes?
A: In every business, cost is the most relevant and sensitive data that every management wants to…
Q: Company A's historical returns for the past three years are 6 percent, 15 percent, and 15 percent.…
A: The capital asset pricing model is a financial concept that is widely used. In this model, the…
Q: What is CML? a. The CAL defined by the market portfolio. b. All of them. C. The steepest capital…
A: The Capital Asset Pricing Model (CAPM) is a mathematical model that depicts the relationship between…
Q: 1. What is Private Equity? 2. What is Sovereign Wealth Funds? 3. What is Hedge Funds?
A:
Q: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…
A: Present value of the bonds will present value of annuity received at the end of every year for eight…
Q: Nazmi Shah Sdn Bhd wishes to expand its business by opening an additional two more stores and needs…
A: Working Note #1 Statement of cash collection Description Month November December January…
Q: what is means activity ratio, liquidity ratio, and Profitability Ratio for a company?
A: An activity ratio is a financial indicator that shows how effectively a firm is generating revenue…
Q: What is the approximate maximum amount that a firm should consider paying for a project that will…
A: Discounting and compounding are the two concepts used in the time value of money to determine the…
Q: A new homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the…
A: Data given: Insulated area = 1,650 square feet Insulation costs =$0.10 per square foot Savings due…
Q: Based on the following information, estimate the justified leading P/E ratio Return on Equity:…
A: Given, The EPS is $6.20 Return on equity (r) is 18% Growth rate (g) is 6.09%
Q: The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 13 years until…
A: Bonds are long-term financing debt. It is a company that raises funds for its business. In return, a…
Q: U.S. Bancorp and Wells Fargo & Company entered into the fixed-for floating interest rate swap with…
A: Notional principal = $1,00,00,000.00 Fixed rate = 6.50% Floating rate = 4.6% + 220bps Frequency of…
3326
J requests insurance on a neighbor's home in his own name. The insurance producer explains that such a policy also would violate the principle of:
a. subrogation
b. assignment
c. warranty
d. insurable interest
3330
Which of the following actions represents consideration in an insurance contract?
a. paying the premium
b. filing a claim
c. missing the policy
d. endorsing a policy
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 3330 Which of the following actions represents consideration in an insurance contract? a. paying the premium b. filing a claim c. missing the policy d. endorsing a policy(a) An insurance agent is not required to disclose all information prior to thecontract of insurance between the insurance company and the insuredperson. Discuss.(b) Nona wishes to purchase a takaful policy, but she wants to know about the role of a Takaful operator compared to an insurance provider. Advise Nona3344 An insured who wants to verify the deductible on Section I of their Homeowners policy should look at which of the following sections of the policy? a. declarations b. insuring agreements c. conditions d. limitations
- If a term life insurance policy isconvertible, it can be: Question38 options: a) revised as neededby the insurer. b) transferred tothe life of another person in thefuture. c) changed to health ordisability protection. d)exchanged for cash in the future.e) changed to a comparablewhole life policy in the future.Eden Orchards, the insured under a policy with Farm Insurance LLC, files a claim for a covered loss. The parties cannot agree on the amount of the loss. Under an appraisal clause, a. the loss will be appraised to the difference between the disputed values. b. the dispute will be submitted to an impartial third party for resolution. c. an estimate by an impartial, qualified third party can be demanded. d. the loss will be shared proportionately by the insurer and the insured1. S1: Maker Co, a manufacture and dealer of household appliances, agrees to indemnify a customer of any loss or damage that the customer may sustain from the use of purchase appliance. The contract to indemnify the customer in case of loss event is accounted for under PFRS 15. S2: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the policyholder. Only S1 is correct. Both statements are correct Only S2 is correct. Both statements are incorrect. 2. It is the change in the relation of the partners caused by any partner being disassociated from the business. Dissolution Formation Liquidation Operations 3. If the promise to grant a license is distinct and that the license provides the customer the “right to access” the entity’s intellectual property, how is revenue recognized from the initial fee in the contract? in full when the initial services to setup the contract are substantially performed deferred and…
- (Based on Appendix 12A) Whole-life insurance policies typically can be surrendered while the insured is stillalive in exchange for a determinable amount of money called the cash surrender value. When a company buysa life insurance policy on the life of a key officer to protect the company against the untimely loss of a valuableresource in the event the officer dies, how should the company account for the cash surrender value?The PRIMARY function of an umbrella liability insurance policy is to provide coverage for • A. personal property damage caused by inclement weather. B. legal claims that exceed the policyholder's primary liability insurance limits. C. multiple dwellings and vehicles under a single insurance policy. D. vehicles that are either rented or borrowed by the policyholder.Which of the following stalements is required by Long- Term care insurers when referring lo inflation proleclion in qualified Long-Term Care policies? A.All policies must include inflation protection. B.It is mandatory for the insurance companies lo offer consumers the option of inflation protection. C.The insurance companies have the choice if hey want to offer inflation protection. D.The purchaser must requesl inflation protection after lhe policy is issued.
- If a prospect does NOT submit the initial premium with an application, the producer should A.refuse tratinghe application B.submit the application to the insurance company and advance the premium for he prospect from the agency account C.submit the applicalion to the insurance company without the premium D.give lhe applicant a conditional receipt and send the application to the insurance company wilhout the premiumWhich of Ike following statements is CORRECT about he Missialement of Age provision in a health policy? A.Il is not an oplional provision. B.It allows an insurance company to adjust the levels of policy benefits for an insured who misslated his age. C.It limits the time wilhin which an insurance company may conlest a claim on the basis of misstatement of age. D.It always voids the contractSuppose Mylan could write an insurance contract whereby it is insured against all penalties resulting from misclassification. Would this affect their need to disclose? Group of answer choices No, because if they are fully covered, investors would find the loss contingency misleading since there is no receivable for the insurance Yes, because they would offset the loss contingency with a receivable which would net to zero No, because purchasing insurance does not relieve the purchaser of its obligation to make payments related to losses that result from risk. Yes, because it is impossible to insure loss contingencies