Net operating profit after taxes (NOPAT) is equal to: A) EBITDA * (1 – tax rate). B) EBITDA * (1 + tax rate). C) EBIT * (1 – tax rate). D) EBIT * (1 + tax rate). ANSWER C
Date: September 19th, 2020
To purchase insurance you must have an insurable interest. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Limited payment life typically terminates coverage at age 65. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
True term insurance provides only death protection. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A “single premium annuity” is another term for an “immediate annuity.” Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Growing firms should be able to rely on internally generated funds since external funding is expensive and unreliable. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Cash value insurance provides a death protection component and a savings component. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An acceptable project must exceed the firm’s cost of debt but not necessarily it’s cost of capital. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Purchasing life insurance is an example of risk reduction. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
With a renewable term life policy you may extend your coverage for an additional period, but you must first pass a medical examination. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
