Complicate insurers dividend decisions

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Reference no: EM132061434

1. Identify five factors that complicate insurers’ dividend decisions.

2. Describe the factors that affect the increase in policyholders’ surplus from discounting loss reserves.

3. Sixx AM Manufacturing has a target debt—equity ratio of 2.6. Its cost of equity is 0.11, and its pretax cost of debt is 0.08. If the tax rate is 0.25, what is the company's WACC? Enter the answer with 4 decimals.

Reference no: EM132061434

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