« previous next »

Author Question: In several states requiring no-fault insurance, A) you are not required to carry personal ... (Read 44 times)

olgavictoria

  • Hero Member
  • *****
  • Posts: 528
on: Jul 11, 2018
In several states requiring no-fault insurance,
 
  A)
 
  you are not required to carry personal injury protection.
  B)
 
  you may sue for physical injuries only if your damages are above either a monetary or verbal threshold defined in state law.
  C)
 
  you may sue only for recovery of the deductible on your no-fault policy.
  D)
 
  no-fault covers only property damage.

Question 2

Marvelous at the Mall Inc. has a before-tax cost of debt of 8.00, but the risk-free rate is only 3.00. If the market risk premium for equity is 6.00 and the firm has a beta of 1.25, what is the required return on equity for the firm?
 
  A) 10.50
  B) 11.00
  C) 11.50
  D) 12.00


softEldritch

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

A
Explanation: A) ke = rf + beta  (Mkt risk premium) = 3 + 1.25 (6) = 10.50.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Earthquake history: Strike-Slip Fault in Turkey Earthquake history: Strike-Slip Fault in Turkey
Examples of Scenarios Involving Nonmoral, Impersonal Moral, and Personal Moral Judgments from the St Examples of Scenarios Involving Nonmoral, Impersonal Moral, and Personal Moral Judgments from the St
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Prevalence of drug use in the United States. Figures are based on a survey of people 12 years of age ... Prevalence of drug use in the United States. Figures are based on a survey of people 12 years of age ...
Examples of low and high Entropy states Examples of low and high Entropy states
Personal Finance (5th Edition) (The Personal Series in Finance) Personal Finance (5th Edition) (The Personal Series in Finance)
Video: Steps of glucose catabolism

For a complete list of videos, visit our video library