Question contingencies consider two firms that self-insure, Ask an Expert

Finance

Question: [Contingencies) Consider two firms that self-insure for workers; compensation losses. Assume that the annual probability of a claim is I an 1.000 for each firm and that each claim has an expected value of S 10,000.

a. Him A has 3 employees

b. Firm B has 10.000 employees. Discuss how each firm should account for its liability for workers; compensation benefits. If there is any difference in your answers, explain why.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92331390

Have any Question?Write your Review or question?

Related Questions in Basic Finance

What are the steps in the typical marketing research

What are the steps in the typical marketing research design/process? Name and define each step.

Would you pay 23 for a share of common stock that just paid

Would you pay $23 for a share of common stock that just paid a $1.65 dividend, its expected growth rate is 4% and your required return is 11%?

What is net present value in terms of evaluating a project

What is Net Present Value in terms of evaluating a project? What is better NPV or Internal Rate of Return when evaluating?

What is the exploration of the effect on npv of changing

What is the exploration of the effect on NPV of changing multiple project parameters called?

Magenta corporation wants to raise 508 million in a

Magenta corporation wants to raise 50.8 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $14 per share. The underwriters will require a spread of $.50 per share, and indicate that ...

What is the major accounting difference between interest

What is the major accounting difference between interest incurred during a period and cash dividends declared during the same period?

Risk versus ambiguitya define each of the concepts risk and

Risk versus ambiguity a. Define each of the concepts risk and ambiguity (sometimes called Knightian uncertainty). b. Provide a simple example that incorporates risk in monetary payoffs but not ambiguity. c. Describe a si ...

Case study - financial report analysisquestions -1 in

CASE STUDY - FINANCIAL REPORT ANALYSIS QUESTIONS - 1. In reading this case study, what is your first impression of the state of affairs with Pifco-Zen Chen Company Limited? 2. Is the company on the right track after you ...

Grant technologies needs 300000 to pay its supplier grants

Grant Technologies needs $300,000 to pay its supplier. Grant's bank is offering a 210-day simple interest loan with a quoted interest rate of 11 percent and a 20 percent compensating balance requirement. Assuming there a ...

The global network has sales of 421945 cost of goods sold

The Global Network has sales of $421945, cost of goods sold of $270002, and inventory of $33598. What is the inventory turnover rate? Round your answer to the nearest hundredth.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert