Retain the small predictable layers of risk and transfer the unpredictable catastrophic layer of risk. Does this statement promote appropriate risk financing decision making

Answers

Answer 1
Answer:

Answer:

Yes the statement does

Explanation:

Retaining small predictable layers of risk and transferring the unpredictable catastrophic layer of risk to a more capable body is a very good approach towards  promoting appropriate risk financing decision making, this is because

Financial risk decisions are decisions taken between alternatives i.e risks associated with business activities . it is more appropriate to take alternatives with a predictable layer of risk,that way it would be easier for the management to handle the risk associated with it, while transferring the unpredictable catastrophic layer of risk to a more capable body ,like the Insurance companies .


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30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $900?
Jane Simpson rates low on conscientiousness. Which of the following statements is most likely to be true about Jane? a. She will be positive and optimistic. b. She will be creative. c. She will be nervous, depressed, and insecure. d. She will be easily distracted. e. She will perform better in jobs that require significant interpersonal interaction.
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TB MC Qu. 3-209 Chavez Corporation reported the ... Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 41,000 $ 37,000 Work in process $ 23,000 $ 31,000 Finished goods $ 39,000 $ 54,000 Additional information: Raw materials purchases $ 73,000 Direct labor cost $ 98,000 Manufacturing overhead cost incurred $ 66,000 Indirect materials included in manufacturing overhead cost incurred $ 10,800 Manufacturing overhead cost applied to Work in Process $ 65,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:

Answers

Answer:

The cost of goods manufactured for July is $ 232,000

Explanation:

Raw Materials Inventories Utilized In Production

Beginning Raw materials        $ 41,000

Add Purchases                        $ 73,000

Less Ending  Raw materials   ($ 37,000)

Used in Production                  $ 77,000

Cost of goods manufactured

Raw Materials                              $ 77,000

Direct labor cost                          $ 98,000

Manufacturing overhead            $ 65,000

Total Cost of Manufacturing     $ 240,000

Add Opening Work in process  $ 23,000

Less Ending Work in process    ($ 31,000)

Cost of goods manufactured   $ 232,000

Not that Manufacturing overhead are included to the amount Applied in the Manufacturing Cost

Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest. What happens in the California wine market as a result of this announcement?

Answers

Answer:

The demand curve for wine shifts to the right

Explanation:

As per the forecast, there should be a decline in grape harvest. This induces the buyers to purchase more quantity of grapes in an anticipation of decline in future harvest which would eventually make grapes costlier than now.

Production of wine depends upon the availability of inputs. Grape being one of the necessary inputs. This means if in future, price of grapes rise, the production of wine would be costlier, which would raise the price of wine.

As a consequence of such an announcement, the wine market would experience an immediate increase in demand for wine which would shift the demand curve to the right.

Noma plans to save $3,400 per year for the next 35 years. If she can earn an annual interest rate of 9.2 percent, how much will she have in 35 years? a) $716,300.24 b) $119,000.00c) $767,464.54 d) $83807128 e) $734,09652

Answers

Answer:

c) $767,464.54

Explanation:

The computation of the future value of an annuity is shown below:

As we know that

Future value of annuity F =  Payment made × ((1 + rate of interest)^t - 1) ÷ rate of interest

= $3,400 × (1.092^35 - 1) ÷ 0.092

= $3,400 × 225.7249

= $767,464.54

Hence, the future value of an annuity is $767,464.54

Therefore the correct option is c.

Final answer:

Noma will have $767,464.54 in 35 years.

Explanation:

To calculate the future value of Noma's savings, we can use the formula for compound interest: FV = P(1 + r)^t, where FV is the future value, P is the principal amount, r is the interest rate, and t is the number of years. In this case, Noma plans to save $3,400 per year for 35 years with an annual interest rate of 9.2 percent. Plugging these values into the formula:

FV = 3400 * (1 + 0.092)^35

Calculating this expression, Noma will have a future value of $767,464.54 in 35 years.

Learn more about Compound interest here:

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Consider the pooling strategy Fg, Fb, where both types have fun. 1) If anticipating this strategy, what are the employer’s beliefs after the signal of F? That is, what is p(g|F)—you do not need to worry about their beliefs following education, since it is off-path. 2) What strategy should the employer choose in response to F? 3) Is Fg, Fb a best reply for both worker types if the employer plays this optimal strategy in response to F, and also hires following education (hE)? 4) What if the employer does not hire after education (∼hE)?

Answers

Answer:

If I am a employer of fb,my strategy will be that I will hire machine learning engineer to solve automation problem,I will give them skills if employer don't hire after education.  

an employee of a company is being paid to assist in the sale of stock options to the company's employees and will recieve a bonus based on sales results. this company employee

Answers

Answer:

An employee of a company who is being paid to assist in the sale of stock options to the company's employees  and receives a bonus based on sales                  results is referred to as an Agent. This is in accordance with Uniform Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

Explanation:

The Uniform Securities Act refers to an employee of a company who is paid to assist in the sale of stock option to the company's employees and receives a bonus based on sales results as an agent. Such an employee is required to register with the state.

Flex Co. just paid total dividends of $1,100,000 and reported additions to retained earnings of $3,300,000. The company has 725,000 shares of stock outstanding and a benchmark PE of 17.4 times. What stock price would you consider appropriate

Answers

Answer:

$105.60

Explanation:

Given: Total dividend paid= $1100000.

           Retained earning= $3300000.

           Number of outstanding shares= 725000.

           PE ratio= 17.4 times.

First finding earning per share.

Formula; EPS= ((paid\ dividend+ additional\ retained\ earning))/(number\ of\ outstanding\ shares)

EPS= ((1100000+3300000))/(725000)

EPS= (4400000)/(725000)

EPS= \$ 6.0689 \approx \$ 6.07

Hence, earning per share (EPS)= $6.07.

Now, finding the appropriate stock price.

Price of stock= EPS* PE

⇒ Price of stock= \$ 6.07* 17.4

∴ Price of stock=\$ 105.60

Hence, $105.60 would be the appropriate price of stock.

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