« previous next »

Author Question: In several states requiring no-fault insurance, A) you are not required to carry personal ... (Read 16 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?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Earthquake history: Strike-Slip Fault in Turkey Earthquake history: Strike-Slip Fault in Turkey
Many thought ideological politics was over in the United States, but 2012 showed strong ideological Many thought ideological politics was over in the United States, but 2012 showed strong ideological
The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
Which aspect of executive functioning is required to play the game of “Simon Says,” in which ... Which aspect of executive functioning is required to play the game of “Simon Says,” in which ...
Types of Farms in the United States Types of Farms in the United States
Created Equal: A Social and Political History of the United States, Brief Edition Created Equal: A Social and Political History of the United States, Brief Edition
Video: Premenstrual Syndrome

For a complete list of videos, visit our video library