« previous next »

Author Question: In several states requiring no-fault insurance, A) you are not required to carry personal ... (Read 41 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?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

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?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

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?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Common Health Problems Requiring Rehabilitation Common Health Problems Requiring Rehabilitation
High rates of rural poverty have been a part of the United States from its origin to the present. ... High rates of rural poverty have been a part of the United States from its origin to the present. ...
Educational Achievement in the United States Educational Achievement in the United States
Income Inequality in the United States: 1947–2009 Income Inequality in the United States: 1947–2009
A Thrust Fault A Thrust Fault
Prevalence rates of obesity in the United States, 2014 Prevalence rates of obesity in the United States, 2014
Video: Interview with Person who has Schizophrenia

For a complete list of videos, visit our video library