This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The co-insurance provision on homeowners' policies A) is meant to eliminate homeowners claims ... (Read 118 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
on: Jul 11, 2018
The co-insurance provision on homeowners' policies
 
  A)
 
  is meant to eliminate homeowners claims for small losses.
  B)
 
  means that the homeowner will receive less than 100 reimbursement on all losses.
  C)
 
  implies that more than one insurance company may be responsible for the losses.
  D)
 
  provides an incentive for homeowners to insure their homes for 100 of replacement cost.

Question 2

Johnson Signs Inc has been able to increase dividends at the rate of 2 per year since the company first started paying dividends in 1957.
 
  Johnson has developed a new production technique and can sell their signs at a premium price for the next three years. This immediate revenue boost will allow Johnson to increase dividends at a rate of 12 per year next year, then 10 the following year, and 8 the next year. After that, they intend to revert to their previous slow but steady increase in annual dividends. If current dividends are 2.45 per share and Johnson investors require an annual rate of return of 11, WHAT IS THE CURRENT PRICE PER SHARE FOR THE COMPANY'S STOCK?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tuate

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

D0 = 2.45
D1 = 2.74, PV D1 = 2.47
D2 = 3.02 PV D2 = 2.45
D3 = 3.26 PV D3 = 2.38
D4 = 3.33
P3 = 36.95 PV P3 = 27.01
Current Price = 34.32


Shelles

  • Member
  • Posts: 582
Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)

jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
L-carnitine is a popular dietary supplement. Notice the claims of improving athletic performance and ... L-carnitine is a popular dietary supplement. Notice the claims of improving athletic performance and ...
Policies on fertility and population growth Policies on fertility and population growth
This isn’t exactly what’s meant by the phrase “You are what you eat,” but it’s close This isn’t exactly what’s meant by the phrase “You are what you eat,” but it’s close
Understanding Food Claims Not all label claims are created equal! Understanding Food Claims Not all label claims are created equal!
Video: Blood Flow Through the Kidneys

For a complete list of videos, visit our video library