What must be the minimum yield on investments to acheive

Assignment Help Financial Management
Reference no: EM131926840

An insurance company's projected loss ratio is 64.8% ands its loss adjusted expense ratio is 25.6%.

The company estimates that comission payments and dividends to policy holders will be 6%.

What must be the minimum yield on investments to acheive a positive operating ratio?

Reference no: EM131926840

Questions Cloud

Calculate the standard deviation of each risk premium : Calculate the average rate of return and standard deviation of returns for the TSX, government bonds and Treasury bills between 2010 and 2014.
On which date will they become due : An insurance group is in the process of evaluating a zero coupon bond purchase from a healthcare organization the needs capital financing.
What is yield on investments required for operating ratio : An insurance company's projected loss ratio is 79.4 percent, and its loss adjustment expense ratio is 13.7 percent.
What is the operating cashflow and net income : What is net income for 2015? What is the operating cashflow for 2015? What is the cash flow from assets for 2015? is this possible? Explain.
What must be the minimum yield on investments to acheive : The company estimates that comission payments and dividends to policy holders will be 6%.
Prepare the journal entry to record the sale of given bonds : Assuming instead that the above bonds sold for 104, prepare the journal entry to record the sale of these bonds on January 1, 2017.
How can this property better manage its working capital : How can this property better manage its working capital? Provide specific suggestions for Watree Lodge management.
Calculate rental cost per unit and utilities cost per unit : Calculate the rental cost per unit and the utilities cost per unit for both March and April. Identify which cost is variable and which is fixed.
What is the semi-strong form hypothesis : Which is more informative the covariance or the correlation coefficient? What is the Semi-strong form hypothesis?

Reviews

Write a Review

Financial Management Questions & Answers

  Interest rates in the bond market rise

Bond X is callable and matures in 10 years. Bond Y is non-callable and matures in 30 years. If interest rates in the bond market rise, which of the following statements is correct?

  Offers an annual interest rate

Henry places the lump sum amount of $475 in a bank savings account today that offers an annual interest rate of 7.95% compounded 12 times per year. How much will Henry have in his account 9 years from today?

  What is the slope of the security market line

What is the slope of the security market line (in percents)?

  Proposed project has a contribution margin per unit

A proposed project has a contribution margin per unit of $13.10, fixed costs of $74,000, depreciation of $12,500, variable costs per unit of $22, and a financial break-even point of 11,360 units. What is the operating cash flow at this level of outpu..

  New project available that requires an initial investment

Dorman Industries has a new project available that requires an initial investment of $5.7 million.

  What is the value of? stacker stock

Stacker Weight Loss currently pays an annual? year-end dividend of ?$1.90 per share. It plans to increase this dividend by 2.0 % next year and maintain it at the new level for the foreseeable future. If the required return on this? firm's stock is 8 ..

  Deposit each year to achieve your goal

What real amount must you deposit each year to achieve your goal?

  Investments according to their expected returns

Ranking investments by expected returns What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Buy a stock for $45 a share, hold it for 3 ye..

  What was the lowest dividend yield over the past year

Find the quote for the Laclede Group. Assume that the dividend is constant. What was the lowest dividend yield over the past year? What was the highest dividend yield over the past year?

  Identify and quantify to complete the road king trucks case

Complete the case study analysis with financial calculations and analysis on an Excel spreadsheet to support your analysis - How much importance should be given to the energy cost situation and what are the project's cash flows for the next twenty ye..

  Money and capital markets

What advantages does the issuance of debt have over other sources of funds that a business firm might pursue? How about disadvantages? What services do investment bankers provide to what groups of clients? What risks do investment bankers face and wh..

  About the debt outstanding

The Schuhmacher corporation has debt outstanding. The total amount that it will have to pay to bondholders in one year's time at date 1 is $100 million. The firm's position since it has issued the debt five years about has steadily deteriorated. It o..

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