An insurance company collected $4.2 million in premiums and disbursed $2.02 million in losses. Lossadjustment expenses amounted to 7.2 percent and dividends paid to policyholders totaled 1.8 percent. Thetotal income generated from their investments was $230,000 after all expenses were paid. What is the netprofitability in dollars? (Enter your answer in dollars not in millions.)Net profitability$ 2183200 X

Net profitablity in dollars can be calculated by using equation belowNet profitablity = Total…

Answered: An insurance company collected $4.2…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...

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An insurance company collected $3.6 million in premiums and disbursed $1.96 million in losses. Loss adjustment expenses amounted to 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
An insurance company collected $4.1 million in premiums and disbursed $2.01 million in losses. Loss adjustment expenses amounted to 7.1 percent and dividends paid to policyholders totaled 1.7 percent. The total income generated from their investments was $220,000 after all expenses were paid. What is the net profitability in dollars? (Enter your answer in dollars not in millions)
A property casualty insurer brings in $6.20 million in premiums on its homeowners MP line of insurance. The line's losses amount to $4,278,000, expenses are $1,550,000, and dividends are $124,000. The insurer earns $186,000 in the investment of its premiums. Calculate the line's loss ratio expense ratio dividend ratio combined ratio (after dividends),
XYZ Ltd.has a net income of $ 56,780. They paid $2000 in interest payments to bondholders and $4,000 in taxes to the government. What is the company's EBIT ? a $80,000 b $56,780 c $62,780 d $46,000
An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?
A property casualty insurer brings in $6.20 million in premiums on its homeowners MP line of insurance. The line's losses amount to $4,278,000, expenses are $1,550,000, and dividends are $124,000. The insurer earns $186,000 in the investment of its premiums. Calculate the line's investment ratio operating ratio overall profitability.
Frezia Corp.'s total assets at the end of last year were P315,000 and its net income after taxes was P22,750. What was Frezia’s return on total assets? * Choices: 7.58% 8.78% 7.22% 7.96% 8.36%
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))
A property-casualty insurer brings in $6.25 million in premiums on its homeowners MP line of insurance. The line's losses amount to $4,343,750, expenses are $1,593,750, and dividends are $156,250. The insurer earns $218,750 in the investment of its premiums. Calculate the line's loss ratio, expense ratio, dividend ratio, combined ratio (after dividends), investment ratio, operating ratio, and overall profitability. (Round your answers to 1 decimal place. (e.g., 32.1)) Loss ratio Expense ratio Dividend ratio Combined ratio Investment ratio Operating ratio Overall profitability % % % % % % %
Calculate economic profit based on the following information: WACC = 7.60%; Total Assets = $1,366; Net Income = $266; EBIT = $327; Payroll Payable = $20; Total Equity = $1,395; Rate = 10%; Cash = $66; Accounts Payable = $25; Bank Debt with interest rate of 7% = $45. (Hint: Accounts Payable and Payroll Tax Payable are the only non-interest bearing liabilities). O 15.85% O 13.60% O 14.28% O 15.04% O 11.58% O 13.50% O-13.50% O 23.45% O -7.60% O-15.85% O 13.85%
Acme Bank: Net profit after taxes = $10 million Assets = 200 ROE = 20% For the following show your calculations of how you arrived at your answer. a. Find ROA b. Find bank capital c. For each dollar of assets acquired by the bank, how much did the owners of the bank use of their own money
Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000, depreciation expense of $104,000, and taxes of $99,000 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow? The pro forma free cash will be $___? (round to the nearest dollar)

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