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Tut 9 Q3 relating to claim expense when calculating FP

0 votes
asked May 13 in BUS 1003H - Introduction to Financial Risk by anonymous


I just want to enquire as to why the R5000 claim expense was not included in calculating the financial position at month 11?

1 Answer

+1 vote
answered May 14 by Tae (280 points)
I think you refering to the OT 10 as I can't find your question on tutorial 9.
If you read the information given just before question 3, it states the claims (R189 million) included the claim costs so you don't need to add the claims costs again to expenses.