Based on the information in Table 4-2, the return on equity is A) 16.66%. B) 18.47%. C) 15.65%. D) 19.33%. ANSWER C
Date: September 19th, 2020
What are the five key methods by which securities are distributed to final investors? What will be an ideal response? ANSWER A Negotiated Purchase: In a negotiated underwriting, the firm that needs funds makes contact with an investment banker, and deliberations concerning the new issue begin. If all goes well, a method is […]
Date: September 19th, 2020
Which of the following statements about the ISO businessowners policy is true? A) The current form is written on a named-perils basis, but an “open-perils” (all risks) endorsement is available. B) It provides business income and extra expense coverage as an additional coverage. C) The policy covers business personal property but does not cover buildings. […]
Date: September 19th, 2020
Given the following financial statements for ARGON Corporation, and assuming that ARGON paid a common dividend of $80,000 in 2010, what is the company’s financing cash flow for 2010? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2 Sales $1,300,000 Current Assets $50,000 $45 Cost of Goods Sold 750,000 Gross Fixed Assets 880,000 650 Operating […]
Date: September 19th, 2020
If the optional replacement cost coverage provision is not selected, how are losses settled under the building and personal property (BPP) coverage form? A) market value B) original purchase price C) actual cash value D) book value ANSWER Answer: C
Date: September 19th, 2020
Which of the following categories of owners enjoy limited liability? A) all partners in a limited partnership B) in a partnership, only the general partners C) common shareholders of a corporation D) only B and C above ANSWER C
Date: September 19th, 2020
Which ocean marine coverage provides comprehensive liability insurance for property damage caused by the ship to piers and docks, damage to the ship’s cargo, and injury to the passengers or crew? A) collision liability clause B) hull insurance C) freight insurance D) protection and indemnity insurance ANSWER Answer: D
Date: September 19th, 2020
John is risk manager of Alpha-2-Omega Company. John wants coverage for “direct physical loss” (“open perils” coverage) under the business and personal property (BPP) coverage form. Which causes-of-loss form should he select? A) special form B) basic form C) standard form D) broad form ANSWER Answer: A
Date: September 19th, 2020
Which of the following statements concerning terrorism insurance is (are) true? I. Terrorism insurance covers direct physical damage to the insured’s property resulting from an act of terrorism. II. Terrorism insurance and be added through an endorsement to the commercial property insurance policy or purchased as a separate, stand-alone policy. A) I only B) II […]
Date: September 19th, 2020
Depending on the firm’s current capital structure, as well as the capital structure following today’s financing decision, the firm may be implicitly deciding on future financing as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
