Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question:
A proprietary life company issues only non-profit guaranteed growth bonds. The company invests only in equities with an expected return of 10% p.a, the risk free rate being 5% p.a. At the balance sheet date there were £100m of equities and growth bonds with a maturity value of £80m, the bonds all maturing in exactly one year's time.
(i) Assuming that the possibility of default by the insurance company may be ignored, calculate, using the result of Modigliani Miller for the cost of equity capital or otherwise, the appropriate risk discount rate to value the shareholder s interest in the portfolio of growth bonds
(ii) Explain the theoretical impact on the risk discount rate of allowing for the default of part or all of policyholder benefits.
(iii) (a) Describe what is meant by franchise value in the context of a life company.
(b) Explain in general terms how the franchise value varies with the amount of capital on the life company balance sheet.
Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Date Face Amount Term Interest Rate 5. Nov. 15 $54,000 60days 6% 6. Dec. 27 $40,500
How to calculate fair value of long-lived asset when the information about fair value is not available?
TERMINATION OF APPOINTMENTS A trustee may cease to hold office in the following ways: (a) Disclaimer : At any time before acceptance of the trusts. (b) Retirement : Eith
EXECUTORS' ACCOUNTS (a) Stewardship : The main object or preparing Estate Accounts is to record the assets which have been entrusted to the "stewards" — the executors — and
Corporation Tax This is the tax payable by companies on their trading activities of a given financial period. The standard doesn’t give the guidelines on how this tax should be
i. Explain carefully what is meant by a price earnings ratio. ii Utilising a valuation model identify and briefly discuss the theoretical determinants of the ratio. iii
explain accounting concepts and conventions?
Absorption costing is a cost accounting method that tries to charge all direct costs and all production costs of an organization to specific units of pr
Protected transactions These fall into three categories: (A) Under Section 50: Payments by the bankrupt to creditors; Payments or deliveries to the bankrupt; C
An investment will pay $200 at the end of every of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of eq
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd