An insurance company collected $3.6 million in premiums and disbursed $1.96 million in losses. Loss adjustment expenses amountedto 6.6 percent and dividends paid to policyholders totaled 1.2 percent. The total income generated from their investments was$170,000 after all expenses were paid. What is the net profitability in dollars? (Enter your answer in dollars not in millions.)Net profitability

Dividends play a significant role in the financial landscape, representing a portion of a company's…

Answered: An insurance company collected $3.6…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Maurer Company has a long-term debt ratio of .31 and a current ratio of 1.70. Current liabilities are $870, sales are $6,290, the profit margin is 8.7 percent, and the ROE is 19.2 percent. What is the amount of the firm’s net fixed assets?
The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue and paid $2.471B in interest expense last year. During the year, write offs and reserves for bad loans was a charge of $75M. This was partially offset by fees and points earned from loans and loan origination, increasing income of $24M. During that year, the bank generated net earnings of $860M. The bank has $24.9B of interest earning assets, AND total assets of $31.5B. The shareholders’ equity is $5.9B. What is the bank’s return on assets (ROA)?
Rosita's Resources paid $11,310 in interest and $16,500 in dividends last year. The times interest earned ratio is 2.9, the depressiation expense is $7,900, and the tax rate 21%. Whate is the value of cash coverage ratio?
Vigo Vacations has $300 million in total assets, $7 million in notes payable, and $29 million in long-term debt. What is the debt ratio? Do not round intermediate calculations. Round your answer to the nearest whole number.
Pearson brothers recently reported an EDITDA of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was it's charge for depreciation and amortization?
A company's sales last year were $615,000 and its net income was $45.800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage
Motorola Credit Corporation's annual report (dollars in millions) 3311 Net revenue (sales) Net earnings 170 Total assets 2,245 Total liabilities 1,929 Total stockholders' equity 316 a. Find the total debt to total assets ratio. (Round your answer to the nearest hundredth percent.) Total debt to total assets b. Find the return on equity ratio. (Round your answer to the nearest hundredth percent.) Return on equity c. Find the asset turnover ratio. (Round your answer to the nearest cent.) Asset turnover d. Find the profit margin ratio on net sales. (Round your answer to the nearest hundredth percent.) Profit margin
A property–casualty insurer brings in $6.55 million in premiums on its homeowners MP line of insurance. The line’s losses amount to $4.898 million, expenses are $1.74 million, and dividends are $110,000. The insurer earns $208,000 in the investment of its premiums. Calculate the line’s loss ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
The Maurer Company has a long-term debt ratio of .70 and a current ratio of 1.60. Current liabilities are $930, sales are $5,145, profit margin is 9.40 percent, and ROE is 17.20 percent. What is the amount of the firm's net fixed assets? Multiple Choice O $10,302.67 $8,814.67 $3,514.75 $7,490.87 $6,560.87
The Maurer Company has a long-term debt ratio of .30 and a current ratio of 1.10. Current liabilities are $970, sales are $5,190, profit margin is 9.90 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets
A bank has total interest income of $85 million and total noninterest income of $15 million. locker's rent received $10. This bank has total interest expenses of $35 million and total non-interest expenses ( excluding provision for loan losses ) of $30 million. it's provision for loan losses is $20 million and its taxes are $15. What is this bank's net income ?
• Last year, J&H Corp. reported a book value of $700 million in current assets, of which 15% is cash, 17% is short-term investments, and the rest is accounts receivable and inventory. • The company reported $595.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period. • The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $1,120 million in long-term assets last year. Income Statement For the Year Ended on December 31 (Millions of dollars) J&H Corp. $1,500 1,200 60 Net sales Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income 1,260 $240 24 $216 86 $130 Industry Average $1,875 1,500 75 1,575 $300 45 $255 102 $153 Based…

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