Maintain a positive operating ration

Assignment Help Finance Basics
Reference no: EM132092728

An insurance company's projected loss ratio is 77.5 percent and its expense ratio is 23.9 percent. it estimated that dividends to policyholders will add another 5 percent. What is the minimum yield on investments required in order to maintain a positive operating ration? (Lg 15-6)

Reference no: EM132092728

Questions Cloud

The implementation of an information systems technology : Where has a company benefited through the competitive advantage that was gained through the implementation of an information systems technology.
What state has personal jurisdiction : If a company is incorporated in Delaware and and an employee gets hurt in California, then later sues. What state has personal jurisdiction?
Identify the primary functions of a database : Identify the primary functions of a database and a data warehouse. Explain why enterprises need both of these data management technologies.
Create a dss component in the form of a spreadsheet : Create a DSS component in the form of a spreadsheet that will be utilized by the corporate Finance Department Manager to reach structured decisions.
Maintain a positive operating ration : What is the minimum yield on investments required in order to maintain a positive operating ration? (Lg 15-6)
What will be the change in the firm total : If the interest rate is 1% per month, what will be the change in the firm's total monthly profits on a present value basis if credit is offered to all customer
Prioritizing systems and functions for recovery : Selecting the DR team, assessing risks and impacts, prioritizing systems and functions for recovery, data storage and recovery sites.
What CMS does your business need : What CMS Does Your Business Need". This will be a fully cited, using Harvard referencing style, essay researched and authored
How much would you be willing to pay for the investment : If the investment is risk free, and the relevant risk free interest rate is 6.6% per year, how much would you be willing to pay for the investment?

Reviews

Write a Review

Finance Basics Questions & Answers

  Transaction in general journal format

Please be sure that you provide this transaction in General Journal format. Additionally give us an example of an event that is not an accounting transaction.

  Well-constructed and persuasive manner

If the output of goods and services is not growing at a similar rate, inflation will eventually occur. According to PPP Theory, what will happen to the U.S. dollar? Why? Explain your answer in a well-constructed and persuasive manner.

  Calculate how many shares will be repurchased

Please help me understand the steps to take to calculate how many shares will be repurchased?

  Determining the forecasted dividend payout ratio

Blease Inc. has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $475,000. If it follows the residual dividend policy, what is its forecasted divide..

  Today the stock is selling at 6337 if the required rate of

preferred stock valuation each quarter sirkota inc. pays a dividend on its perpetual preferred stock. today the stock

  Research your organization and find capital projects

Research your organization and find capital projects your company has completed in the last 5 to 10 years. Explain the project assessment methods the organization should have used to assess these projects

  Calculate the present value of the generated cash flows

Calculate the present value of the generated cash flows. (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

  A large commercial bank

You are valuing First Bank, a large commercial bank

  Per organ procurement and transplantation network

State University Hospital and State Donor Services." Per Organ Procurement and Transplantation Network, under the direction of the U.S.

  Calculate projected long-term growth rate of the dividends

ABC pays consistent dividends that grow at a constant rate. ABC is expected to pay a dividend one year from now of $1.99 and the current price of the stock.

  Formula for present value of settlement payments

A court settlement awarded an accident victim four payments of the $50,000 to be paid at the end of each of next four years.

  Impact of accounting for operating leases as capital

impact of accounting for operating leases as capital leasesvirtually all firms have some amount of commitment under

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd