The Green Company building was valued at $220,000 . The building was insured for $100,00 . at a premium rate of $5.60 per thousand. The policy contained an 80% coinsurance clause. A small fire caused damages costing $35,200 to repair. Later in the year,
another fire caused damages costing $105,600 to repair. How much more did the insurance company pay for repairs for fire damage for Green Company during the year than it earned in premiums from the Green Company for the year?
$79,440 more
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Consider four investments, where risk is measured by the standard deviation. The investments are identical in every way except for their expected return and risk: Investment A:expected return = 2 percent, risk = 5 percentInvestment B:expected return = 5 percent, risk = 4 percentInvestment C:expected return = 14 percent, risk = 20 percentInvestment Dexpected return = 6 percent, risk = 12 percent ? If a risk-averse investor can buy only one of the four investments and compares each investment with the other three, which investment option would he never choose?
A. Investment A, because its expected return is lower than Investment B and its risk is higher. B. Investment B, because its expected return is so much lower than Investment C. C. Investment C, because its risk exceeds its expected return. D. Investments D, because the expected return to investment D is so much lower than Investment C.
In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power
A) coercive B) reward C) passive D) expert E) referent
Joe is researching any external issues or trends that seem likely to affect the work unit. Which management function is he engaging in?
A) Supervision B) Budgeting C) Representation D) External awareness
Cash-2-Day currently trades for $13. Analysts regard it as fairly valued at its current price. The company has announced that it intends to spend $180 million on an open market repurchase
Management claims that the company's shares are occasionally undervalued and that buying shares at undervalued prices represents a good investment. Assume that the company is able to repurchase shares at a price of $12. There are 275 million shares outstanding prior to the repurchase. What stock price prevails after the repurchase? A) $9.00 B) $10.77 C) $12.06 D) $13.06 E) $15.60