Why would person consider buying disability income coverage

Assignment Help Financial Management
Reference no: EM131185095

Why would a person consider buying Disability Income coverage that covers on the job injury:

A: Workers Compensation only covers non-occupational injury

B: Most employees are not covered by Workers Compensation

C: Disability Income is primary over Workers Compensation coverage

D: Workers Compensation benefits may be inadequate

Reference no: EM131185095

Questions Cloud

What is pretax cost of debt and aftertax cost of debt : Jiminy’s Cricket Farm issued a bond with 10 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 95 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? Wha..
What is your best estimate of the companys cost of equity : Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 9 percent, and T-bills are currently yielding 4.6 percent. The company’s most recent dividend was $1.80 per share, and dividends are expected to grow at an annual rate of 8 pe..
Regarding the tax implications of health insurance : All of the following are true regarding the tax implications of health insurance EXCEPT:
Regarding key employee disability income insurance : All of the following are true regarding Key Employee Disability Income insurance, EXCEPT:
Why would person consider buying disability income coverage : Why would a person consider buying Disability Income coverage that covers on the job injury:
Describe interest rate risk and reinvestment rate risk : Describe interest rate risk and reinvestment rate risk and how these relate to the maturity risk premium. Based on reinvestment rate risk, provide an example on how a 1-year bond or a 10-year bond would be a better investment for a typical community ..
What is the price per share of the companys stock : Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $171,000, $97,000, and $121,000, respectively.  What is the price per share of the company's st..
What is the federal estate tax paid : Hank and Wendy are married to each other, are both US citizens, and have two minor children. Their property consists of the following: Commercial property (cost $850,000; fair market value $5,300,000) held in Hank's name, as his separate property. Wh..
The increase in net working capital and capital spending : Ward Corp. is expected to have an EBIT of $2,250,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $172,000, $99,000, and $122,000, respectively. All are expected to grow at 15 percent per year ..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculating future values

Calculating Future Values. You have just made your first $5,000 contribution to your individual retirement account. Assuming you earn a 10.1 percent rate of return and make no additional contributions, what will your account be worth when you retire ..

  Explain the similarities and differences of the two budgets

You were recently hired as management director of the new I Can Business Incorporated (ICBI). You have been asked to establish policies and systems for the business. Explain the similarities and differences of the two budgets. Give an example of budg..

  Why company a has a higher return on equity

Company a and company b have the same gross profit margin and the same total asset turnover, - but company a has a higher return on equity, why?

  Planning to leave for the mountains and be a survivalist

You are planning to leave for the mountains and be a survivalist in ten years. You will be able to deposit $1,000 per year at the end of each of the first five years and $2,000 per year for the following five years. You start your savings plan today ..

  Analyzing the after-tax cost of debt for firm

You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 10.60 percent semi-annual coupon bonds are selling at a price of $1,034.33. These bonds are the only debt outstanding for the firm. What is the after-..

  What is your bonds rate of return over the year

You buy a(n) 5.2% coupon, 6-year maturity bond for $943. A year later, the bond price is $1,048. Assume coupons are paid once a year and the face value is $1,000. a. What is the new yield to maturity on the bond (one year from now)? (Do not round int..

  One of the primary function of financial market

One of the primary function of a financial market is to

  What is the holding-period yield

An investor is interested in purchasing a 30-year government bond carrying a 10 percent coupon rate. The bond’s current market price is $950 for a $1000 par value instrument. What is the yield to maturity? Suppose the investor sells the bond at the e..

  Considering operating a lock-box system

Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 500 payments a day will be made to lock boxes with an average payment size of $2,500. If the lock box makes the cash availabl..

  What is the firms cost of equity

Eccles Inc., a zero growth firm, has an expected EBIT of $120,000 and a corporate tax rate of 35%. Eccles uses $500,000 of 12% debt, and the cost of equity to an unleveled firm in the same risk class is 16%. What is the firm's cost of equity?

  What is the bonds nominal coupon interest rate

Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semi annually, and they sell at a price of $950. What is the bond's nominal coupon interest rate?

  What is the before-tax cost of capital for debt financing

Black Hill Inc. sells $100 million worth of 18-year to maturity 7.58% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $972 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

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