Which of the following organization forms accounts for the most revenue? A) “S” corporation B) Limited partnership C) “C” corporation D) Limited liability company ANSWER C
Date: September 19th, 2020
Explain why the author uses the following formula to explain the amount of money a firm needs to repay an outstanding principal balance. Support your answer with n example that shows how much in EBT a firm in a 30% tax bracket would require to repay $1,000 in principal. Before-tax cost of debt repayment = […]
Date: September 19th, 2020
The auto dealers coverage form includes coverage for violating odometer (mileage) disclosure laws and selling a vehicle where there was a title defect. Which coverage under the auto dealers coverage form would respond to such claims? A) garagekeepers liability coverage B) liability coverage for “covered autos” C) general liability insurance coverage D) acts, errors or […]
Date: September 19th, 2020
What was the average annual rate of return on 3-month U.S. Treasury bills during the period 1990 to 2014? A) 3.04% B) 5.68% C) 4.23% D) 2.15% ANSWER A
Date: September 19th, 2020
Based on the information in Table 4-3, assuming that the firm has no preferred stock, and paid $300,000 in common dividends, the firm’s return on equity was A) 61.89%. B) 43.34%. C) 79.43%. D) 33.53%. ANSWER D
Date: September 19th, 2020
One physical damage coverage alternative under the Business Auto Policy provides coverage for losses caused by certain named perils, such as fire, lightning, or explosion; theft; windstorm, hail or earthquake; flood; vandalism or mischief; or the sinking, burning, collision or derailment of any conveyance transporting the covered auto. This physical damage coverage alternative is A) […]
Date: September 19th, 2020
Mr. Wizard’s Magic Shoppe had the following condensed balance sheet at the end of operation for 2010: Mr. Wizard’s Magic Shoppe Balance Sheet December 31, 2010 Cash $40,000 Current Liabilities $35,000 Other current assets 60,000 Long-term Notes Payable 40,000 Total current assets $100,000 Bonds Payable 50,000 Investments $25,000 Capital Stock 150,000 Fixed assets (net) 110,000 […]
Date: September 19th, 2020
One type of liability insurance covers damages arising from the failure of a data holder to protect private information from being accessed by an unauthorized party. This type of liability coverage is called A) errors and omissions insurance. B) cyber liability insurance. C) terrorism insurance. D) employment-related practices liability insurance. ANSWER Answer: B
Date: September 19th, 2020
The risk premium would be greater for an investment in an oil and gas exploration in unproven fields than an investment in preferred stock because A) the preferred stock is more liquid. B) oil and gas exploration investments have a greater variability in possible returns. C) the inflation rate would vary more with oil and […]
Date: September 19th, 2020
You are considering buying some stock in Continental Grain. Which of the following are examples of non-diversifiable risks? I. Risk resulting from a general decline in the stock market. II. Risk resulting from a possible increase in income taxes. III. Risk resulting from an explosion in a grain elevator owned by Continental. IV. Risk resulting […]
Date: September 19th, 2020
