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2 years ago

Which of the following factors can impact your monthly auto insurance premium?

Business

1 answer:

erastova [34]2 years ago

6 0

Answer:

The correct answer is: Your age, driving record, and annual mileage.

Explanation:

Auto insurances take into account several risk factors at the moment of evaluating what type of coverage insureds should purchase. Individuals' <em>age (higher premium if older), driving record (higher premium if negative), and average annual mileage (higher premium the more mileage</em>) are key factors insurance companies tend to consider to find out what is the most convenient policy for those people and based on that, the premium that will be charged every month.

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On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the go

Lina20 [59]

Answer:

Dec. 28, 20Y3

Dr Account receivable - Beasley co. 18,500

Cr Sales 18,500

Dec. 28, 20Y3

Dr Cost of goods sold 11,200

Cr Inventory 11,200

Jan. 3, 20Y4

Dr Sales return and allowance 4,000

Cr Account receivable - Beasley co. 4,000

Jan. 3, 20Y4

Dr Inventory 2,350

Cr Cost of goods sold 2,350

C. Jan. 7, 20Y4

Dr Cash 14,210

Dr Sales discount 290

Cr Account receivable - Beasley co. 14,500

Explanation:

A. Preparation of the Journal to record the December 28, 20Y3 sale, using the net method under a perpetual inventory system

Dec. 28, 20Y3

Dr Account receivable - Beasley co. 18,500

Cr Sales 18,500

Dec. 28, 20Y3

Dr Cost of goods sold 11,200

Cr Inventory 11,200

B. Preparation of the journal entries to record the merchandise returned

Jan. 3, 20Y4

Dr Sales return and allowance 4,000

Cr Account receivable - Beasley co. 4,000

Jan. 3, 20Y4

Dr Inventory 2,350

Cr Cost of goods sold 2,350

C. Preparation of Journal entry to record the receipt of the amount due

Jan. 7, 20Y4

Dr Cash 14,210

[(18,500-4,000)-(18,500-4,000)*2% ]

Dr Sales discount 290

[(18,500-4,000)*2% ]

Cr Account receivable - Beasley co. 14,500

(18,500-4,000)

8 0

2 years ago

The Darwin Company reports the following information that occurred during the current period: Sales commissions expense $15,600

ch4aika [34]

Answer:

The Darwin Company

Calculation of Manufacturing Overhead costs:

= $17,200

Explanation:

a) Data and Calculations:

Depreciation on factory equipment $4,700

Indirect labor 5,900

Factory rent 4,200

Factory utilities 1,200

Indirect materials used 1,200

Total Manufacturing overhead costs = $17,200

b) Darwin's manufacturing overhead costs will include only the above listed costs. Sales commissions, direct materials, direct labor, and office salaries expense do not form part of the manufacturing overhead costs. The manufacturing overhead costs are neither direct materials or labor costs or selling and administration costs.

8 0

2 years ago

Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per shar

Kitty [74]

Answer:

The answer is "8.37%".

Explanation:

$\text{MV of equity} = \text{equity price} \times \text{number of outstanding shares}$

$=84 \times 4100000\\\\=344400000$

$\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}$

$=1000 \times 70000 \times 0.98 \\\\=68600000$

$\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}$

$=1000 \times 50000 \times 1.08 \\\\=54000000$

$\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}$

$=344400000+68600000+54000000\\\\=467000000$

$\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}$

$= \frac{344400000}{467000000}\\\\=0.7375$

$\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}$

$= \frac{122600000}{467000000}\\\\=0.2625$

Equity charges

By DDM.

$\text{Price = new dividend} \times \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}$

$84 = 3.95 \times \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95 \times \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity} = 0.049375 + 0.05\\\\\text{Cost of equity} = 0.099375 \\\\\text{Cost of equity} \% = 9.9375 \% \ \ \ or \ \ \ 9.94 \% \\\\$

Debt expenses

Bond1

$K = N \times 2 \\\\$

$Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}$

$k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\$

$K = N \times 2$

$Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}$

$k=1\\\\K =12 \times 2\\\\$

$1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\$

$\text{Company debt costs} = YTM1 times \frac{(MV \ bond1)}{(MV \ bond1+MV \ bond2)}+YTM2 \times \frac{(MV \ bond2)}{(MV \ bond2)}\\\\$

The cost of the debt for the company:

$= 5.2628923903 \times \frac{(68600000)}{(68600000+54000000)}+4.72 \times \frac{(68600000)}{(68600000+54000000)}\\\\$

Business debt cost= $5.02 \% \\\\$

after taxation cost of debt:

$= \text{cost of debt} \times (1- tax \ rate)\\\\= 5.02 \times (1-0.21)\\\\= 3.9658\\\\$

$WACC= \text{after debt charges} \times W(D)+equity cost \times W(E) \\\\$

$=3.97 \times 0.2625+9.94 \times 0.7375 \\\\ =8.37 \% \\\\$

7 0

2 years ago

Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A

Pachacha [2.7K]

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

7 0

1 year ago

On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t

Lilit [14]

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted 92000

X Fair value on date of grant 5

Total compensation expense 460000

Years 3

Compensation expense per year 1 53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

3 0

2 years ago