1. Assume a firm owns a small warehouse. The warehouse is subject to the risk of a fire. Below is the probability distribution for losses: Loss ($) P(Loss) 0 0. 75 10,000 0. 15 15,000 0. 07 20,000 0. 03 The firm has six current risk management options it can use to manage this risk: [1] Retention with a worry value of $3,000. [2] Insurance policy with a FA of $10,000, a premium of $2,900. This option has a worry value of $2,500. [3] Insurance policy with a face amount (FA) of $12,000, a premium cost of $3,200. Also Implement a loss reduction program that costs $400 and changes the probability of a $0 loss to 78% and eliminates the potential of a $20,000 loss. All other loss probabilities stay the same. This option has a worry value of $2,000. [4] Insurance policy with a face amount (FA) of $20,000 with a premium cost of $5,000 and a deductible of $700. This option has a worry value of $600 [5] Insurance of $20,000 with a premium cost of $6,000. A. Construct a loss matrix. What is the expected cost for each option
Answers
The expected costs for each option calculated from the probability distribution are 1. $5,250 2. $2,925 3. $1,740 4. $1,750 5. $2,400.
To construct a loss matrix, we first calculate the expected loss for each option by multiplying each loss amount by its probability of occurrence and summing the products.
For option [1], the expected loss is $5,250 ($0.750 + $0.1510,000 + $0.0715,000 + $0.0320,000 - $3,000).
For option [2], the expected loss is $2,925 ($0.752,900 + $0.15(10,000-10,000) + $0.07*(15,000-10,000) + $0.03*(20,000-10,000) - $2,500).
For option [3], the expected loss is $1,740 ($0.78*(3,200+400) + $0.07*(15,000-20,000) + $0.15*(10,000-12,000)).
For option [4], the expected loss is $1,750 ($0.755,000 + $0.15(10,000-700-10,000) + $0.07*(15,000-700-10,000) + $0.03*(20,000-700-10,000) - $600).
For option [5], the expected loss is $2,400 ($0.756,000 + $0.15(10,000-20,000) + $0.07*(15,000-20,000) + $0.03*(20,000-20,000)).
The loss matrix is a table that shows the expected cost of each option under different loss scenarios. The rows represent the possible losses, and the columns represent the different risk management options.
The expected cost for each option can be obtained by summing the expected loss and the cost of the option. The loss matrix is as follows:
Option 1 Option 2 Option 3 Option 4 Option 5
$0 $5,250 $5,425 $4,140 $5,050 $6,400
$10,000 $2,925 $2,925 $2,925 $2,925 $2,925
$15,000 $1,740 $1,740 $1,740 $1,740
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Related Questions
. Gadgets unlimited, the company has ten million shares outstanding and is trading at $12 per share. Gadgets have total assets of eighty million dollars and have total debt of 35 million dollars. In the year 2021, net profit grew 15%, and in 2020 Gadgets reported a 25 million profit. I Calculate Price to Earnings Ratio Calculate Price Book Value Calculate Return of Equity
Answers
In finance, various valuation ratios are used to assess a company's performance, profitability, and valuation. Among these ratios, Price to Earnings Ratio, Price to Book Ratio, and Return on Equity are some of the most commonly used. Gadgets Unlimited is a company that has ten million shares outstanding, and it is trading at $12 per share. The company has a total asset of $80,000,000 and a total debt of $35,000,000.
Price to Earnings Ratio (P/E Ratio) refers to the ratio that measures the current share price relative to its per-share earnings. The formula to calculate Price to Earnings Ratio is:
Price to Earnings Ratio = Market Value per Share / Earnings per Share
Gadgets Unlimited, which has ten million shares outstanding and is trading at $12 per share.
The calculation is:
Price to Earnings Ratio = $12 / ($25,000,000 / 10,000,000)
Price to Earnings Ratio = 48/5 = 9.6
Calculate Price Book Value: Price to Book Ratio (P/B Ratio) is used to compare a company's market capitalization to its book value.
The formula to calculate Price to Book Ratio is:
Price to Book Ratio = Market Value per Share / Book Value per Share
Here, we can first calculate the Book Value of Gadgets Unlimited.
The calculation is:
Book Value = Total Assets - Total Debt
Book Value = $80,000,000 - $35,000,000
Book Value = $45,000,000
Therefore, the calculation for Price to Book Ratio of Gadgets Unlimited is:
Price to Book Ratio = $12 / ($45,000,000 / 10,000,000)
Price to Book Ratio = 4/9 = 0.44
Calculate Return of Equity:
Return on equity (ROE) measures how much profit a company generates with the money shareholders have invested. The formula to calculate Return on Equity is:
Return on Equity = Net Income / Shareholders'
EquityIn 2021, the net profit of Gadgets Unlimited grew by 15% from $25,000,000 to:
Net Income 2021 = $25,000,000 + 15% of $25,000,000
Net Income 2021 = $28,750,000
The calculation for Return on Equity is:
Return on Equity = $28,750,000 / ($80,000,000 - $35,000,000)
Return on Equity = $28,750,000 / $45,000,000
Return on Equity = 0.64 or 64%
In 2021, Gadgets Unlimited reported a net profit growth of 15%, and in 2020, the company reported a net profit of $25,000,000. Based on the given information, we can calculate the three mentioned ratios to assess Gadgets Unlimited's performance and valuation. Price to Earnings Ratio (P/E Ratio) measures the current share price relative to its per-share earnings. Here, we can calculate the P/E Ratio of Gadgets Unlimited, which is 9.6. This indicates that investors are willing to pay $9.6 for every $1 of earnings per share. Book Value per Share measures the company's market capitalization relative to its book value. Here, the calculation for the Price to Book Ratio of Gadgets Unlimited is 0.44. This ratio indicates that the company's market capitalization is 0.44 times its book value per share. Return on Equity (ROE) measures how much profit a company generates with the money shareholders have invested. Here, the calculation for the Return on Equity of Gadgets Unlimited is 64%. This ratio indicates that the company can generate a return of 64% for every dollar invested by shareholders.
Based on the calculations, we can say that Gadgets Unlimited has a high P/E Ratio, which indicates that the company's stock is overvalued. The Price to Book Ratio indicates that the company's market capitalization is lower than its book value per share. This could be due to various reasons, such as market sentiment, company performance, or market volatility. The Return on Equity indicates that the company can generate a high return on the money invested by shareholders. Therefore, overall, Gadgets Unlimited is a profitable company that can generate a high return for shareholders.
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Landscape manager Anthony in our opening story has $100 per hour to allocate to for labor in the greenhouse. Anthony already has two employees that each earn $9 per hour. What is the greatest number o
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The greatest number of additional employees Anthony can hire within the budget is 9 employees.
Based on the information provided, Anthony has a total budget of $100 per hour to allocate for labor in the greenhouse.
He already has two employees who each earn $9 per hour.
To determine the greatest number of additional employees Anthony can hire within the budget, we need to calculate the remaining amount after accounting for the wages of the current employees.
The total amount spent on the current employees per hour is:
2 employees × $9 per employee = $18 per hour
To find the remaining budget, we subtract the amount spent on current employees from the total budget:
$100 - $18 = $82
Now, we need to determine how many additional employees can be hired at a rate of $9 per hour within the remaining budget.
The number of additional employees can be calculated by dividing the remaining budget by the wage per employee:
$82 / $9 = 9.11
Since we cannot hire a fraction of an employee, we round down to the nearest whole number.
Therefore, the greatest number of additional employees Anthony can hire within the budget is 9 employees.
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What is one way people can reduce the amount of taxes they owe in a year?
A. Give money to charity
B. Earn a higher income
C. Purchase luxury goods
D. Work longer hours
Answers
Answer:
A
Explanation:
Donating money to charity is one method people might lower their annual tax burden. Therefore, (A) is the correct option.
What is Tax?Taxes are required payments made to individuals or enterprises by a government agency, whether local, regional, or federal. Income, capital gains, or the estate are all subject to taxes.
One of the ways to reduce the amount of tax payable is to donate money to a charity.
Therefore, (A) is the correct option.
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how do u respond to lol
Answers
Answer:
depends on what you are lol ing about
Explanation:
Why is account management important in the vegetable farming ? give reason .
Answers
Answer:
Money
Explanation:
The expected result of farming would be to make money, account management would help the most in making money. With account management, you can see how well your farm is producing money which in turn can tell you if you are growing quality crops or a crop that your clients want the most.
Answer:
It is important to appreciate the fact that modern business management principles can assist the farmer or farm manager, no matter how small his farm may be and however meager his capital. This is because of the two major tasks facing today’s farm managers.
Explanation:
Importance of agriculture in the Food supply Agriculture is the world’s leading source of food items. All the food substances that are essential viz. Agriculture produces vegetables, proteins, and oils. The carbohydrates provide all living beings with energy.
Research cultural business communication etiquette for a country outside of the USA, and list 5 tips for successful cultural communication and etiquette in a business setting. Include the name of your country, the 5 tips (bulleted statements) and the website URL of your research used.
Answers
Answer:
wow
Explanation:
Well water from an aquifer is a good that economists call "rival" but "non-excludable." Explain what you think that means?
Answers
Answer:
"Non-excludable " : This means that the well water form an aquifer can be drilled by anybody and not just a specific person or company.
" rival " : This means that the consumption of well water form an aquifer is exclusive for certain consumers ( i.e. cannot be consumed by everybody )
Explanation:
well water from an aquifer is a good considered "Non-excludable " : This means that the well water form an aquifer can be drilled by anybody and not just a specific person or company.
Well water from an aquifer is a good considered " rival " : This means that the consumption of well water form an aquifer is exclusive for certain consumers ( i.e. cannot be consumed by everybody )
difference between owners funds and borrowed funds
Answers
Answer:
The Owner's Funds are the total amount invested by the owner of an enterprise and the accumulated profits that they have reinvested in the business. The Borrowed Funds are the funds that a business raises through loans or borrowings from outside parties
Explanation:
Hunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools:
(b) During the year, actual overhead cost and activity were recorded as follows: (i) Prepare a journal entry to record the incurrence of actual manufacturing overhead cost for the year (credit Accounts Payable). Post the entry to the company's Manufacturing Overhead T-account. (ii) Determine the amount of overhead cost applied to production during the year. (iii) Prepare a journal entry to record the application of manufacturing overhead cost to Work in Process for the year. Post the entry to the company's Manufacturing Overhead T-account. (iv) Determine the amount of underapplied or overapplied manufacturing overhead for the year.
Answers
The Labor Related activity rate is $7.5 per direct labor hours
The Production orders activity rate is $ 90 per order
The Material Receipts is $120 per receipts
The calculation is in tabular form so it is attached with this answer
What is activity rate ?
An activity ratio is a type of financial metric that indicates how efficiently a company is leveraging the assets on its balance sheet, to generate revenues and cash.
management and accounting departments. In other phrases, they're responsible for managing the overall economic front of the enterprise. read extra can use numerous interest ratios to gauge their performance. The maximum popular ratios are stock turnover and general assets turnover.
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list out the tasks of an overseer.
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Answer:
Mentor, coach, monitor and supervise communities throughout the shelter construction process. Provide technical assistance to households involved in shelter construction. Coordinate with counterparts in other PIN's areas of operation, ensuring exchange of lessons learnt and good practices
Explanation:
Which type of business is most likely to obtain large amounts of resources by issuing stock?
a. Partnership
b. Corporation
c. Proprietorship
d. None are correct.
Answers
A corporation is most likely to obtain large amounts of resources by issuing stock. Option b is correct.
Corporations are the most likely type of business to obtain large amounts of resources by issuing stock because they are able to sell shares of ownership to investors. This allows them to raise capital without having to rely solely on loans or personal investments. Additionally, corporations are able to issue multiple classes of stock, which can attract a wider range of investors with different investment preferences.
While partnerships and proprietorships may be able to obtain some resources through investments from partners or owners, they are typically more limited in their ability to raise capital compared to corporations. It is important to note that not all corporations choose to issue stock, and there are other factors beyond business structure that can impact a company's ability to raise resources.
Thus, option b is correct.
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True or False. An advantage of using Gantt charts is that they provide a standard format for displaying planned project schedule information.
Answers
Answer:
false
Explanation:
they do not provide a standard format for displaying planned project schedule information.
Do the benefits of tax withholding outweigh the costs?Why or why not?
Answers
Answer:
:)
Explanation:
Yes, the benefits of tax withholding outweigh the costs.
Reason: tax withholding helps to make sure that everyone pays their fair share of taxes and that the government has the funds that it needs to provide services and maintain infrastructure.
On the other hand, it also means that the people have less money to spend on things like food and shelter.
So it is a compromise that we as the society have to agree upon. But it is a compromise that is worth it for the overall benefits that it brings.
What is meant by the economic problem?
Answers
Answer:
hey! hope this helps love! Economic problems asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. Economics involves the study of how to allocate resources in conditions of scarcity.
Referring to an individual as “a person with schizophrenia,” as opposed to “a schizophrenic,” is an example using _____________ language.
Diagnostic
People-first
Inappropriate
Boundary-safe
Answers
Answer:
People-first
Explanation:
People-first language is a form of linguistic medication style involving a speaker putting a person before describing the actual diagnosis, that is, what a person "has" rather than asserting what a person "is."
For example, “a man walks with crutches” rather than” he is disabled.” Person-first language tends to be positive and promotes abilities rather than limitations.
Hence, in this case, Referring to an individual as “a person with schizophrenia,” as opposed to “a schizophrenic,” is an example using PEOPLE-FIRST Language.
statement of facts: wendy and peter want to buy property together. wendy will be contributing $70,000.00 of the $100,000.00 purchase price, while peter will be contributing $30,000.00. wendy has two brothers, john and michael, whom she loves very much and she really wants them to inherit her share of the property after her death. applicable law/rules: tenants in common can own unequal percentages of the property, allowing the co-owners to take into account varying levels of contribution. upon the death of a tenant in common, the share owned by the decedent passes through his or her estate to the beneficiaries determined by will, if applicable, or by intestate succession (without a will). joint tenants must own equal percentages, regardless of contribution. upon the death of a joint tenant, the share owned by the decedent goes to the surviving joint tenant.
Answers
Wendy's share would go to her estate , to be distributed via her will or via intestate succession .
What does the term "intestate" mean?
Dying without a will is known as intestacy. "Died intestate" refers to a person who passes away without leaving a will. Intestate decedents' estates are handled by the probate court.
The assets of the decedent will be distributed in accordance with the state's intestacy laws.
An intestate heir is what?
Except in cases where a child was adopted by a close relative, biological children who have been adopted by another person typically are not entitled to inherit under intestate succession laws.
If the deceased had no children, the surviving husband would probably get the entire estate.
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Which interest group most supported the position represented by the dollar bill with the face of bill bryan?.
Answers
Banks supported the position represented by the dollar bill with the face of bill Bryan the most.
Since the cessation of U.S. fractional currency notes in 1876, the United States one-dollar bill ($1), sometimes known as a single, has been the lowest value denomination of U.S. paper currency. Currently, the obverse of the coin has a representation of George Washington (1789-1797), the first president of the United States, based on Gilbert Stuart's 1796 painting Athenaeum Portrait, and the reverse has the Great Seal of the United States. The one-dollar bill is the piece of contemporary U.S. currency with the oldest overall design (The current two-dollar bill obverse design dates from 1928, while the reverse appeared in 1976).
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Hailey is considering taking out an 8-year loan with monthly payments of $115 at an apr of 3. 2%, compounded monthly, and this equates to a loan of $9728. 75. Assuming that hailey's monthly payment and the apr of the loan remain fixed, which of these is a correct statement?.
Answers
The total loan amount is $9728.75. Hence, B. If it were a 14-year loan, the amount of the loan that Hailey is considering taking out would be less than $9728.75.
As the term of the loan increases, the total amount of the loan increases as well. This is because a longer loan term means more opportunities for interest to accrue, which increases the overall cost of the loan. Since the monthly payment and APR are fixed, as the term of the loan increases, the total amount of the loan would decrease.
To calculate the total loan amount, you can use the formula:
Loan Amount = Monthly Payment x\(( ( 1 + r )^n^ -^ 1) / (r * (1 + r)^n)\)
Where:
Loan Amount is the total loan amount
Monthly Payment is the fixed monthly payment ( $115 in this case)
r is the monthly interest rate (3.2%/12)
n is the number of months for the loan term ( 8 years x 12 months/year)
Plugging in the values from the question:
Loan Amount = 115 x ( ( 1 + 0.0032 )⁹⁶ ⁻ ¹) / (0.0032 x (1 + 0.0032)⁹⁶)
Loan Amount = 115 x ( 1.0032⁹⁶ ⁻ ¹) / (0.0032 x 1.0032⁹⁶)
Loan Amount = 115 x (2.812973 - 1) / (0.0032 x 2.812973)
Loan Amount = 115 x 1.812973 / 0.0096
Loan Amount = 9728.75
Hailey is considering taking out an 8-year loan with monthly payments of $115 at an APR of 3.2%, compounded monthly, and this equates to a loan of $9728.75. Assuming that Hailey's monthly payment and the APR of the loan remain fixed, which of these is a correct statement?
A. If it were a 6-year loan, the amount of the loan that Hailey is considering taking out would be more than $9728.75.
B. If it were a 14-year loan, the amount of the loan that Hailey is considering taking out would be less than $9728.75.
C. If it were a 12-year loan, the amount of the loan that Hailey is considering taking out would be less than $9728.75.
D. If it were a 10-year loan, the amount of the loan that Hailey is considering taking out would be more than $9728.75.
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With ______, an organization can parcel out the entire complex work effort to be performed by specialists, which results in greater efficiency.
Answers
With division of labor, an organization can parcel out the entire complex work effort to be performed by specialists, which results in greater efficiency.
What is division of labor?Division of labor can simply be defined as the division of tasks in order to enable different person or individual to be involved in the tasks.
Division of labor tend to lead to efficiency when task are allocated to separate individual.
With division of labor an organization or company can allocate or assigned the whole tasks to be performed to different individual which are specialists in the field they are.
Inconclusion with division of labor, an organization can parcel out the entire complex work effort to be performed by specialists, which results in greater efficiency.
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What are some examples of how debt can be a good thing?
exposed brotherbro :>
Answers
Answer:
It can be good
Explanation:
I got not email long I and I will be there for you to come and see you again and I hope that we will have to get the name of our team and to be unconstitutional
1. Define Trade, Import and Export
2. List items the U.S. imports and exports.
Answers
Answer:
food and clothing
Explanation:
import is to bring things from a different country for sale. export is to give things to a different country or place for sale. trade is to transfer or exchange something from a different country.
When you plan a presentation, how should you make sure you stay on track as you talk?
A. Make a list of general topics and points you want to cover.
B. Write out every word of the presentation on notecards.
C. Memorize every word of the presentation in your head.
D. Have the audience tell you what else you need to talk about.
Answers
Answer:
A make a list
Explanation:
Answer:
It's A. Make a list of general topics and points you want to cover.
Explanation: hope it helps ^w^
What is the difference between being financially dependent and being financially independent?
Answers
Answer:
Being financially dependent means that you depend on the government to help you and being independent means that you are depending on the money you make from work.
Explanation
i know a little about business hope this helps
3 Prepare an income statement for Jones Co. for the year ending December 31, 2018, using the following data.
Cash 8,000
Miscellaneous Expense 100
Wages Expense 150
Rent Expense 200
Fees Earned 11,000
Office Expense 200
Accounts Payable 3,000
Answers
The net income for Jones Co in 2018 equals $18,350.
What is income statement?The financial statement shows a company's revenues, expenses and profitability over a period of time. Its computes the revenue from selling products or services and expenses to generate the revenue and manage your business.
The income statement for the year ending December 31, 2018 is prepared as follows:
Income Statement
Revenue
Cash 8,000
Fees Earned 11,000
19,000
Expenses
Miscellaneous Expense 100
Wages Expense 150
Rent Expense 200
Office Expense 200 650
Net Income $18,350
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Kerr Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 and $20,000 (Cr.), respectively. An aging of accounts receivable indicated that $170,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is
Answers
Answer:
$150,000
Explanation:
Calculation to determine what The amount of the adjusting entry for bad debts at December 31 is
Using this formula
Bad debts=Accounts receivable-Allowance for Doubtful Accounts
Let plug in the formula
Bad debts=$170,000-$20,000
Bad debts=$150,000
Therefore The amount of the adjusting entry for bad debts at December 31 is $150,000
Which of the following is not an example of professional behavior
?
Answers
A firm has four different investment options. Option A will give the firm $10 million at the end of one year, $10 million at the end of two years, and $10 million at the end of three years. Option B will give the firm $5 million at the end of one year, $10 million at the end of two years, and $15 million at the end of three years. Option C will give the firm $15 million at the end of one year, $10 million at the end of two years, and $5 million at the end of three years. Option D will give the firm $21 million at the end of one year, nothing at the end of two years, and $9 million at the end of three years. Which of these options has the highest present value if the rate of interest is 5 percent
Answers
Answer:
The answer is "Option D".
Explanation:
Using the formula for calculating present value:
\(= \frac{Future \ value}{(1+r)^n}\\\\\)
that's why "Option D" is correct.
According to the environment industry organization for model cell 2 represents which of these environments
Answers
It should be noted that in the environment industry organization model, cell 2 simply means B. Complex stable environment.
The business or industry environment simply means the environment where an organization operates. It includes the customers, partners, suppliers, etc.
In the environment industry organization model, cell 2 simply means the complex stable environment.
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Suri owns a small gift shop in Chicago. She hopes the economy will rebound this fall as she has to order her Christmas merchandise and other holiday gifts in February. She wants to make sure she has enough goods for the surge in sales that the holiday season usually brings to her retail store, so she orders more than the previous year. Here, Suri is using __________ to be sure she has enough gifts for those extra customers that she hopes will bear the economic woes and shop for holiday presents
Answers
Here Suri is using buffering to make sure that the extra customers have enough gifts.
What is buffering?This is a word that is used to lessen the impact of something. Suri is using Buffering as a way of trying to lessen the impact of the economic woes.
Buffering also helps by lessening the shock that may be eminent in the economy.
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instructions:wikarambulan is a sound like game. by saying\pronouncing and connecting the word, reveal the elements and factors of principles, tools and techniques in creating a business. write your answer on the blank space provided in the side of the paper.
1. IS TRE ENGCKS
2. OP FORTUNE NI TEAS
3. WEEK NEST CES
4.THREE EATS
5. IN DUST TREE
6. END BY RON MEANT ALL
7. PIE HAVE FOUR ZEST
8. ENCHO NO MEEK
9. SOAP FLYER
10. COST TOO MHER
Answers
Answer:
1.strengths
2.opportunities
3.weakneses
4.threats
5.industry
6.environment
8.economic
9.supliyer
10.customer